1 / 9New Trade Tariffs Begin: US President Donald Trump has imposed new tariffs on imports from Canada, Mexico, and China, effective this Tuesday. The move follows escalating trade tensions, with Canada and Mexico quickly retaliating, and China planning countermeasures. In 2023, US trade with North America amounted to $1.8 trillion, while trade with China totalled $643 billion, underscoring the significance of the US’s economic ties with its neighbours. (Reuters photo)
2 / 9Economic Emergency Declared: On Saturday, Trump declared an economic emergency and signed an order imposing tariffs: a 10% duty on all imports from China, and a 25% duty on those from Mexico and Canada. However, certain Canadian energy imports, such as oil, natural gas, and electricity, will be taxed at a reduced rate of 10%. (Bloomberg photo)
3 / 9Auto Industry Impact: The US auto industry, which relies heavily on cross-border supply chains between the US, Canada, and Mexico, is expected to see substantial price increases. In 2023, the US imported $69 billion in vehicles from Mexico and $37 billion from Canada, with Mexico also supplying $78 billion in auto parts and Canada sending $20 billion. Many car parts, including engines in popular models like Ford’s F-series trucks, cross borders multiple times during the manufacturing process. Tariffs are expected to increase car prices by around $3,000, with the added costs likely passed on to consumers, according to S&P Global Mobility. (AP photo)
4 / 9Crude Oil and Gas Prices: Canada is the largest foreign supplier of crude oil to the US, sending $90 billion worth in 2023, a key resource for US refineries. This oil is particularly important since it matches the type of crude that many US refineries are designed to process. The imposition of tariffs on Canadian oil could drive up gasoline prices, especially in the Midwest. TD Economics forecasts a potential price increase of 30 to 70 cents per gallon.
5 / 9Electronics and Gadgets: China plays a major role in supplying electronics to the US, including cell phones, computers, and other devices. Additionally, the US imported over $32 billion in toys and games from China in 2023. The new tariffs are expected to raise the prices of these popular consumer goods.
6 / 9Clothing and Footwear Costs: The US also imports significant quantities of clothing and footwear from China, including $7.9 billion in footwear alone in 2023. As a result, the tariffs will likely lead to price increases for a wide range of clothing and shoes. (Reuters photo)
7 / 9Alcohol Prices May Rise: Popular alcoholic beverages, including tequila from Mexico and Canadian whisky, will likely see price hikes due to the tariffs. In 2023, the US imported $4.6 billion worth of tequila and $537 million worth of Canadian whisky. Retaliatory tariffs from Canada and Mexico, coupled with the US facing a 50% tariff on American whiskey in the EU starting in March, could further hurt the industry. (Reuters photo)
8 / 9Food Prices Under Pressure: The US imports a significant portion of its food from Mexico and Canada. In 2023, Mexico supplied over $45 billion in agricultural products, including 63% of vegetables and 47% of fruits and nuts. Canada provided another $40 billion in farm products. A 25% tariff could increase the prices of essential items, particularly avocados, which are almost exclusively imported from Mexico. (Shutterstock photo)
9 / 9US Farmers’ Concerns: US farmers are concerned about potential retaliatory tariffs on American crops, such as soybeans and corn, which could mirror the situation during Trump’s first term. During that period, retaliatory tariffs led to a significant drop in exports, prompting the government to spend billions in compensation to farmers. Many farmers, like Mark McHargue, president of the Nebraska Farm Bureau, would prefer to see efforts focused on opening foreign markets for US exports, rather than relying on government subsidies to offset losses. (AP photo)
