President Donald Trump's tariffs and trade policy changes are expected to drive price increases across an array of consumer goods when they go into effect this week, from large purchases like cars and lumber to everyday groceries including meat and fruit, as well as products from popular online overseas retailers Temu and Shein.
The president’s tariffs against China, Mexico and Canada eliminated a trade exemption used by ... [+]
Experts estimate the average price of new cars will increase by $3,000, while the price tag for other vehicles, including full-sized trucks, may rise by as much as $10,000, since about 22% of all vehicles sold in the U.S. are imported from Canada and Mexico, according to S&P Global, and several U.S.-based automakers like General Motors and Ford rely on Canadian and Mexican companies for parts.
Patrick De Haan, GasBuddy’s head of petroleum analysis, told CBS he expects the price of gas to increase up to 40 cents a gallon within days of tariffs impacting Canada and Mexico, as Canada sends about 20% of the oil used by Americans.
The Forest Resources Association, a lumber trade group, suggests a 25% tariff on Canadian imports would result in a “supply shock” in the U.S. and cause the price of lumber to increase up to over $600 per thousand board feet, up from just below $590.
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U.S.-based companies will likely raise prices on products as they pay taxes on imported foreign goods, though it’s not immediately clear which prices would be directly affected.
Trump’s tariffs target the “de minimis” trade provision, which allows companies to send packages valued at $800 or less to the U.S. without paying duties or certain taxes. The U.S. processed more than 1.3 billion de minimis shipments in 2024, and the number of shipments has gradually increased since 2015 (139 million), according to the U.S. Customs and Border Protection Agency. The Biden administration proposed changes to the provision in September 2024, reportedly citing its “overuse and abuse” by low-cost retailers like Temu, Alibaba’s AliExpress and Shein. Haul, Amazon’s low-cost retailer that relies on third-party sellers in China, also reportedly relies on the exemption. Amid a threat of the provision being eliminated, Temu and Shein have moved to open distribution centers and supply chains in the U.S., allowing both companies to continue avoiding paying additional fees like duties or taxes, according to Bloomberg.
The center-right Tax Foundation estimates tariffs on Canada, Mexico and China would cost each U.S. household more than $830 in additional taxes in 2025. Consumers in the U.S. would be required to pay more in sales tax as companies—which pay taxes on imported foreign goods—raise their prices.
A 10% tariff on Chinese goods took effect Tuesday, though 25% tariffs on Canadian and Mexican imports were delayed until March. Trump and Mexican President Claudia Sheinbaum said Monday that tariffs levied on Mexican imports would be delayed as the Trump administration negotiates with Mexican officials.
Trump has signaled tariffs on Canada, China and Mexico for months, despite opposition from some economists and business leaders. U.S. Chamber of Commerce vice president John Murphy called the tariffs “unprecedented” and said they would “raise prices for American families and upend supply chains.” Jay Timmons, CEO of the National Association of Manufacturers, said the “ripple effects” of Trump’s tariffs would “be severe” for smaller manufacturers in the U.S. and “[undermine]