President Donald Trump’s tariffs on imports from Canada, Mexico and China are expected to spike prices on a range of goods, from food and electronics to home appliances and cars.
The new duties, which went into effect Tuesday, impose a 25% levy on the North American neighbors and 20% on China. The three countries accounted for 40% of the nation’s imported products last year.
The extent and timing of price increases will depend on whether businesses absorb some of the additional costs, adjust their supply chains, or rely on existing inventory before passing expenses onto consumers.
Here’s what shoppers can expect by country:
Canada
Agricultural products from Canada include grains such as wheat, barley, and oats, along with meat products like beef, pork, and poultry.
Dairy products, including cheese, milk, and butter, are also significant imports. The US also imports fruits and vegetables, particularly out-of-season produce.
For grocery retailers — an industry that operates on thin profit margins — the higher import costs leave little room to absorb the additional expenses, making it likely that price hikes will be passed directly to consumers.
The US also imports a significant amount of vehicles and auto parts from Canada, including cars, trucks, engines, transmissions, tires, and other components.
Many automakers have integrated supply chains that cross the border multiple times.
Vehicles sold in the US today are rarely built entirely on American soil. Many automobile components cross the Mexican and Canadian borders multiple times before final assembly, whether in the US or one of its neighboring trade partners.
“There’s probably not a vehicle on the market today that wouldn’t be affected in some form or fashion by tariffs,” Peter Nagle, an automotive economist for S&P Global Mobility, told CNN.
“I would think prices would start to change in the one-to-two weeks after the tariffs go into effect.”
An analysis by the Anderson Economic Group, a Michigan-based think tank, estimates that production costs for vehicles manufactured in North America will rise between $3,500 and $12,000.
These higher costs could make it unfeasible to continue producing certain models, especially those with lower-cost option packages.
As a result, industry-wide job cuts and production reductions may become necessary, according to Patrick Anderson, CEO of the Anderson Economic Group.
“Producers will stop making some of the models,” Anderson explained.
Machinery and equipment are also major imports, covering industrial machinery, construction and mining equipment, as well as computers and electrical machinery.
Mexico
The US maintains a robust trade relationship with Mexico, importing a variety of goods that bolster various sectors of the US economy. In 2024, US goods imports from Mexico totaled $505.9 billion, marking a 6.4% increase from the previous year.
In 2024, the US imported $46 billion worth of agricultural products from Mexico. This included $8.3 billion in fresh vegetables, $5.9 billion in beer, and $5 billion in distilled spirits.
The largest single category was fresh fruit, totaling $9 billion, with avocados alone accounting for $3.1 billion.
Another significant portion of the imports comprises vehicles and automotive parts, underscoring Mexico’s pivotal role in the North American automotive industry.
In 2023, the US imported vehicles valued at $130.03 billion from Mexico, including cars at $44.96 billion, parts and accessories for motor vehicles at $35.11 billion and vehicles for transporting goods at $32.88 billion.
Electrical machinery and equipment also represent a substantial segment of US imports from Mexico.
In 2023, these imports were valued at $85.55 billion, encompassing products such as insulated wires and cables at $15.62 billion, telephones and smartphones at $10.36 billion, and monitors and projectors at $10.16 billion.
Additionally, the US imports significant amounts of mineral fuels, oils, and agricultural products from Mexico.
China
China is the US’ largest trade partner, serving as a major supplier of electronics, machinery, textiles and consumer goods, while the US exports agricultural products, aircraft, and technology components.
However, the relationship is often strained by trade imbalances, tariffs and geopolitical tensions.
Consumer electronics are among the most heavily imported goods from China, with items such as cell phones, laptops, TVs, video game consoles and related components being integral to American households and businesses.
In 2023, the US imported approximately $126.68 billion worth of electrical and electronic equipment from China.
This category encompasses a wide range of products, including consumer electronics such as smartphones, computers, and televisions. Notably, consumer electronics alone accounted for $96 billion in imports from China, representing 41% of US imports in this sector.
China is also a leading supplier of home appliances, toys and footwear, making these industries particularly vulnerable to the tariff increases.
According to the Footwear Distributors & Retailers of America, an industry trade group representing brands like Nike, Steve Madden and Cole Haan, an overwhelming 99% of shoes sold in the US are imported.
Toys and sporting goods are another sector heavily dependent on China.
Approximately 75% of toys and sports equipment — including items like footballs, soccer balls, and baseballs — come from Chinese manufacturers, making them especially susceptible to price hikes due to the tariffs.
