Trump New Tariffs on Canada Mexico & China Could Shake Up Prices Everywhere

Big changes are coming to America’s trade policy, and they could hit your wallet. The Trump administration is rolling out new tariffs on goods from Canada, Mexico, and China starting Saturday. That means higher taxes on imported products, which could lead to price hikes on everyday essentials like food and gas.

Here’s the deal: The U.S. is slapping a hefty 25% tariff on all imports from Canada and Mexico and a 10% tariff on Chinese goods. That’s a big move, and not surprisingly, Canada and Mexico aren’t happy. Their leaders have already promised to fight back, raising concerns about a possible trade war.

So, what does this mean for you? Well, experts say these tariffs will likely make many products more expensive. That’s because when companies have to pay extra taxes on imported goods, they usually pass those costs on to shoppers. This could affect everything from avocados and tequila to auto parts and fresh produce like tomatoes, cucumbers, and mangoes.

But that’s not all. Gas prices could also take a hit. The U.S. gets 70% of its imported crude oil from Canada and Mexico, and if tariffs drive up the cost of oil, you could see a sharp increase at the pump—potentially as much as 70 cents more per gallon, according to an expert in the oil industry. However, Trump has hinted that there might be an exemption for oil, which could help keep gas prices in check. The final decision, though, is still up in the air.

Why is the administration doing this? White House Press Secretary Karoline Leavitt explained that the goal is to punish these countries for allowing illegal drugs to enter the U.S. She said this move aligns with promises Trump made on the campaign trail and shows he’s following through.

The reaction from other countries has been swift. Canada’s Prime Minister Justin Trudeau warned that his country would respond “forcefully and immediately.” Meanwhile, Mexico’s President Claudia Sheinbaum seemed skeptical that the tariffs would actually happen, but assured Mexicans that her government has a plan in place just in case.

Inflation is another concern. Prices have already been rising, and while inflation has cooled down from its 2022 peak, it’s still higher than what the Federal Reserve wants. Adding tariffs to the mix could push prices even higher. However, Leavitt defended Trump’s track record, pointing out that inflation averaged just 1.9% during his first term.

With the new tariffs set to take effect in less than a day, the big question is whether businesses will absorb the extra costs or pass them on to consumers. Either way, the impact could be felt in grocery stores, gas stations, and car dealerships across the country. The world will be watching to see how this trade battle unfolds.