Trump tariffs on Canada, Mexico, China start today

President Donald Trump’s sweeping tariffs on imports from Mexico and Canada and an additional 10% levy on goods from China on top of the existing ones will go into effect today.

The US traded nearly $2.2 trillion in goods with these nations in 2024. The move could disrupt supply chains and raise costs for cars, food, crude oil and essential goods.

Cars
Higher import taxes on auto parts could add $3,000 to vehicle prices, as parts frequently cross borders before assembly. The US imported $79 billion in cars from Mexico and $31 billion from Canada last year.

Beers and spirits
Mexican beers like Modelo and Corona could get pricier, and so could tequila and whiskey.

Housing and fuel
Tariffs on Canadian lumber could increase home prices. Fuel prices may also rise if Canada cuts crude oil exports in retaliation.

Energy imports from Canada—including oil, gas and electricity—will face a lower 10% tariff. 

However, higher oil import costs may raise gas prices, especially in the Midwest, where refineries depend on Canadian crude.

Consumer goods and food
The US imported $32 billion in toys from China and billions in clothing, including $7.9 billion in footwear.

Food
Prices of perishables may rise, too. Mexico supplies 47% of imported vegetables and 40% of fruits. Farmers fear retaliatory tariffs on US soybeans and corn. Avocados, which comprise 90% of the US supply, may see a cost surge.

To stop the levies, Canadian and Mexican leaders scrambled to change Trump’s mind. They increased border security and even proposed retaliatory tariffs. But it wasn’t enough to stop the tariffs from taking effect today.

China has yet to respond with new concessions, leaving uncertainty about future trade relations.