Donald Trump’s decision to win the presidential election and impose a 25% tariff on products coming from Canada and Mexico from February 1 has created a stir in the US. This move is likely to have a direct impact on American customers. Trump’s decision may be aimed at promoting domestic production, but it will have a huge impact on the pockets of ordinary Americans.
Which products will see a 25% increase in prices?
1. Food and alcohol
According to data from the US Department of Agriculture (USDA), the US imported agricultural products worth $46 billion from Mexico in 2024. The increase in tariffs will especially increase the prices of beer and liquor. Constellation Brands, which makes Modelo and Corona beer, is expected to see a 16% increase in costs, which will directly affect American customers. >
2. Automobiles and auto parts
According to the US Department of Commerce, $87 billion worth of vehicles and $64 billion worth of auto parts were imported from Mexico in 2024. Due to the increased tariff rates, the prices of cars and their parts are expected to increase in the coming months. This will cause huge losses to both car manufacturers and customers. >
3. Gas and fuel
According to the US Energy Information Administration (EIA) report, the US imported about $97 billion worth of gas and oil from Mexico in 2024. Gas prices are sure to increase due to the new tariff rates. According to the Center for American Progress, this decision will put an additional burden of $1,300 annually on an average American family. >
4. Beer, tequila and avocados will be expensive.
Mexican products are in high demand in the US, especially beer, tequila and avocados. By the end of 2021, these products were among the most popular food and beverages in American homes. According to the Ministry of Agriculture and Rural Development, the list of the most exported Mexican products to the US in 2021 is as follows:
- Beer – $4.86 billion
- Tequila – $3.71 billion
- Avocado – $2.77 billion
- Tomatoes – $2.38 billion
- Chili – $1.61 billion
Beef, berries, bakery products and confectionery items are also included in this list. >
All these products will now become more expensive due to the 25% tariff increase, which will put an additional burden on the pockets of American consumers.
Will tariffs harm only Americans?
The Center for American Progress says that Trump’s new tariff policy will prove to be harmful only for American citizens.
- Initially, he had talked about imposing a 10% tariff, which was later increased to 20% and now 25%.
- Experts say that American companies will pay this tax, which will increase prices and increase the burden on consumers.
- An average American family may now have to spend an additional $1,300 annually.
Conclusion
The impact of Donald Trump’s new tariff policy will be clearly visible on the common citizens of America. The prices of gas, beer, tequila, avocados, automobiles and other consumer products are going to increase. The real burden of these policies will ultimately be borne by American consumers. If these tariffs remain in force for a long time, then their effect will also be seen on the American economy and the lifestyle of the people.
FAQs
Q. What products will be affected by the new 25% tariffs?
A. Food, alcoholic beverages (beer and tequila), automobiles, auto parts, and gas prices will see significant increases.
Q. How much will the price of beer and tequila increase?
A. Costs for beer and tequila are expected to rise by around 16% due to higher import costs.
Q. Why is the U.S. imposing a 25% tariff on Mexico and Canada?
A. The tariff aims to boost domestic production, but it may lead to higher prices for American consumers.
Q. How much extra will an average American household pay annually?
A. Experts estimate that households may pay an additional $1,300 per year due to increased product costs.
Q. Will gas prices also go up because of these tariffs?
A. Yes, gas prices are expected to rise as the U.S. imports a large amount of gas and oil from Mexico.
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