American consumers and businesses are bracing for rising costs as President Donald Trump’s tariffs hit the nation’s top three trading partners—China, Mexico, and Canada.
With only a slight exemption for some Canadian energy products, all imports from these countries now face tariffs of at least 20% for China and 25% for Mexico and Canada. While the impact won’t be immediate, prices on many everyday goods are expected to rise, given that over 40% of U.S. imports come from these nations.
The extent of price hikes will depend on how businesses absorb costs, adjust supply chains, and manage existing inventory. Here’s where Americans are likely to feel the sting the most:
Food Prices Set to Soar
Mexico and Canada play a key role in U.S. food imports. Mexico is the largest supplier of fruits and vegetables, while Canada dominates in grain, livestock, poultry, and meat exports.
Retailers, operating on thin profit margins, may have no choice but to pass tariff-related costs onto shoppers. Target CEO Brian Cornell warned that fruit and vegetable prices could rise within days, as the company depends on Mexican imports during winter.
Last year, the U.S. imported $46 billion worth of agricultural products from Mexico, including $8.3 billion in vegetables, $9 billion in fruit, and $3.1 billion in avocados. Trump has also proposed additional tariffs on agricultural imports, which could drive prices even higher.
Electronics, Toys, and Appliances at Risk
China supplies a major share of consumer electronics to the U.S., including cellphones, TVs, laptops, and gaming consoles. It’s also a key provider of home appliances, toys, and sporting goods.
According to the Footwear Distributors & Retailers of America, 99% of shoes sold in the U.S. are imported, with over half coming from China. Meanwhile, 75% of imported toys and sporting equipment, including footballs and baseballs, also come from China. These categories face a significant threat from the new tariffs.
Car Prices Expected to Climb
The auto industry is deeply intertwined with North American trade, as car parts often cross U.S., Mexican, and Canadian borders multiple times before assembly.
“There’s probably not a vehicle on the market today that won’t be affected by tariffs,” said Peter Nagle, an automotive economist at S&P Global Mobility. Price increases could start within one to two weeks of tariffs taking effect.
According to the Anderson Economic Group, production costs for North American cars could rise between $3,500 and $12,000. Some lower-cost models may be discontinued altogether, leading to job losses in the industry. While Trump claims automakers will relocate production to the U.S., experts warn that such a shift would take years and come with high costs.
With tariffs now in place, American wallets are set to feel the strain—whether at the grocery store, electronics aisle, or car dealership.
