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Tariffs: How Soon Can Consumers Start Paying More for Goods

About one-third of US imports come from the three countries Trump targeted Saturday. Their products are critical to Americans, including food, fuel, automobiles, electronics, toys, clothing, lumber, and alcohol.

Food Mexico and Canada supply key food categories. Mexico is the top supplier of fruits and vegetables, while Canada leads in grain, livestock, and poultry exports. Tariffs could make groceries more expensive, as retailers with thin margins may pass costs to consumers.

The US imported $46 billion in agricultural products from Mexico last year, including $8.3 billion in vegetables, $5.9 billion in beer, $5 billion in spirits, and $9 billion in fruit. Avocados alone accounted for $3.1 billion.

Fuel and energy The US imported $97 billion in oil and gas from Canada last year. Tariffs on Canadian energy are set at 10%, limiting the immediate impact on gasoline prices. However, if they remain in place through summer, the Midwest states—Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, North Dakota, Ohio, Pennsylvania, South Dakota, and Wisconsin—will feel the biggest price hikes, as they rely heavily on Canadian oil.

Cars and car parts The US imported $87 billion in vehicles and $64 billion in auto parts from Mexico last year. Motor vehicles were also the second-largest Canadian import at $34 billion.

The auto industry is bracing for price hikes, as companies have relied on Mexico’s lower wages to keep production costs down. A 25% tariff could erase those savings. Affected models include the Chevrolet Silverado, Ford Maverick, Toyota Tacoma, Nissan Sentra, and Dodge Journey.

Beer and alcohol Tariffs would hit some of the US’s most popular alcoholic beverages, including tequila and top-selling beer brands like Modelo and Corona. Constellation Brands, which imports both, may see costs rise 16%, potentially leading to a 4.5% price hike for consumers.

In 2023, the US imported $5.69 billion in beer and $4.81 billion in alcohol from Mexico, a 126% increase since 2017. Rising costs of steel, aluminum, and grain could further impact US beer and spirits producers.

Construction materials Softwood lumber, crucial for homebuilding, accounts for 30% of the US supply and largely comes from Canada. Tariffs on lumber could worsen the ongoing housing affordability crisis. Other materials, such as gypsum for drywall, also face tariffs, adding billions to construction costs.

Consumer impact timeline Consumers can expect price increases at different times:

  • Gasoline and energy: 2-4 weeks.
  • Groceries and food: 1-3 months.
  • Cars and auto parts: 3-6 months.
  • Beer and alcohol: 2-5 months.
  • Construction materials: 3-9 months.

If tariffs persist, inflation in these sectors will be long-term, with ripple effects across the economy.

How New Tariffs on Mexico, Canada, and China Could Send Car Prices Soaring

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