Donald Trump’s new tariffs on Canada and Mexico are expected to increase food and gas prices across the U.S., affecting millions of households. The tariffs impose a 25% tax on imports from Canada and Mexico, while energy imports from Canada will also face a 10% tariff.
According to food industry expert Phil Lempert, about 63% of vegetables and 50% of fruit and nuts in the U.S. come from Mexico, while much of the country’s meat is imported from Canada. He warned that prices for essentials like avocados, berries, cooking oil, beer, and tequila will rise significantly. “This is not something that’s going to have a good effect for consumers any time soon,” he told ABC.
Gas prices are also expected to increase, as Canada is a major supplier of fuel to the U.S. Additionally, vehicle costs may go up, since many car parts are manufactured in Mexico. “A lot of our U.S. cars are assembled, and parts come from Mexico. So, we’re going to see the price of cars go up,” Lempert added.
Canada and Mexico have already responded with their own counter-tariffs, with Canada imposing a 25% tax on $155 billion worth of U.S. goods. Mexican President Claudia Sheinbaum has also ordered economic measures to protect Mexico’s interests. The economic standoff is likely to escalate further, leaving American consumers bracing for higher costs.
