Massive Beads Black Obsidian - Stone of Pleasure - Handmade Yoga Stretch Elastic Bracelet Natural Stone Crystal Healing Power Energy Gifts for Unisex Adult 4mm
$5.99 (as of February 2, 2025 12:39 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)Starting Tuesday, former President Donald Trump will apply new taxes (tariffs) on products coming from Mexico, Canada, and China. These taxes include:
10% on all products from China
25% on products from Mexico and Canada
10% on energy imports from Canada, like oil and gas
What Does This Mean?
Mexico and Canada quickly announced they will also tax U.S. goods in response, and China said it will take “necessary countermeasures.”
Trade between the U.S., Mexico, and Canada is much bigger than trade with China. In 2023:
$1.8 trillion was traded between the U.S., Mexico, and Canada.
$643 billion was traded between the U.S. and China.
How Will This Affect Prices?
Car Prices Will Go Up
Many car parts are manufactured in Mexico and Canada before being assembled in the U.S. With a 25% tax, prices will rise. In 2023, the U.S. imported:
$69 billion in cars from Mexico
$37 billion in cars from Canada
$78 billion in auto parts from Mexico
$20 billion in auto parts from Canada
Experts say the average price of a car could increase by $3,000.
⛽ Higher Gas Prices
The U.S. gets most of its oil from Canada, about $90 billion worth in 2023. With new taxes, gas prices in the U.S. could rise by 30 to 70 cents per gallon.
Electronics, Clothing, and Toys
China is a big supplier of cell phones, computers, clothes, and toys. Tariffs on China mean:
Phones, laptops, and gaming consoles could get more expensive.
Clothes and shoes, including $7.9 billion in footwear, will cost more.
Toys and sporting goods could go up – imports were more than $32 billion last year.
Alcohol prices will rise, too. Americans imported $4.6 billion worth of tequila and $108 million in mezcal last year from Mexico.
The United States purchased $537 million worth of Canadian spirits, including whisky.
Mexico and Canada could raise taxes on U.S. booze in retaliation. Bourbon and other U.S. spirits might then get pricier.
Food prices will skyrocket – just in time for the Super Bowl
90% of avocados in the U.S. are from Mexico, so the cost of guacamole could increase.
63% of all vegetables imported into the U.S. and 47% of fruits and nuts are from Mexico.
$40 billion in food comes from Canada.
Grocery stores operate on small margins so cannot absorb these increases, which means consumers will have to pay.
Farmers Are Concerned
China, for example, retaliated against U.S. tariffs by taxing American products like soybeans and corn. This hurt farmers, and billions in taxpayer money were spent to bail them out.
Some farmers, such as Nebraska farmer Mark McHargue, say they would rather sell their crops freely than get government checks.
Conclusion
The new tariffs will probably make cars, fuel, electronics, alcohol, and groceries more expensive. Mexico, Canada, and China are expected to hit back with their own taxes, affecting American farmers and businesses.