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Jun 3, 2025  |  
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Jack Birle


NextImg:Which products will see higher prices from Trump’s tariffs on Canada and Mexico? - Washington Examiner

President Donald Trump is following through on his threat to levy 25% tariffs against Mexico and Canada after they failed to meet his demands to stop drugs and illegal immigrants from entering the United States.

Despite early cooperation from both neighboring countries to try and appease Trump, who made the threat to establish a tax on imports before he returned to the White House, his administration hasn’t been satisfied with the actions Mexico and Canada have taken.

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The White House announced on Tuesday that the tariffs on Mexico and Canada would be enacted, after they were delayed by a month. Later that day, Commerce Secretary Howard Lutnick teased that an agreement could ease some of the tariffs on Wednesday.

During his first term, Trump used the threat of tariffs as a bargaining chip with several countries, including China.

Gas, food, and alcohol prices are expected to rise due to the tariffs on Mexico and Canada, threatening to undermine a key promise Trump made on the campaign trail to bring down the price of consumer goods.

Here are some of the items imported from Canada and Mexico that could be affected.

Materials (plastics, aluminum, etc.)

Materials such as plastics, aluminum, and wood are some of the top major exports from Canada to the U.S., according to Trading Economics. Canada exports roughly $8 billion in softwood lumber every year, with the U.S. being the single largest purchaser. Cranking up costs for lumber could limit the number of new houses being built, undercutting one of Trump’s primary promises to voters to make their lives more affordable.

Major exports from Mexico to the U.S. include materials such as plastic, aluminum, rubbers, and glass.

Agriculture

Agricultural products are expected to be significantly affected by the new North American tariffs.

According to the U.S. Department of Agriculture’s Economic Research Service, 63.8% of U.S. agriculture imports from Canada in 2023 were meat, animal products, grains and feeds, along with oilseeds and oilseed products. The vast majority of agriculture imports from Mexico in 2023, 72.5%, were vegetables, fruit, beverages, and distilled spirits.

Gas

The tariffs on crude petroleum could be especially painful for the U.S., which imported more from Canada than from any other country in 2023. The U.S. imported $97 billion worth of crude petroleum from Canada that year, compared to $20 billion from Mexico and $55 billion worth from the rest of the world.

Gasoline has been one of the items most frequently discussed when people have expressed concerns over the potential cost of tariffs.

Cars

The auto industry has been spared from tariffs for now, with Trump announcing automakers would get a one month pause on the 25% blanket tariff.

Vehicles are also one of the largest imports from Mexico into the United States. U.S. trade with Mexico has gone up across the board since Trump’s first term, with vehicles and car parts being a big driving in that increase.

While the countries’ trade-in vehicles and auto parts was always robust, it has soared since 2017, with the U.S. importing $30.4 billion in vehicles in 2017 and $44.8 billion in 2023. Similarly, the U.S. imported roughly $22.6 billion in auto parts in 2017 and $34.8 billion last year.

Alcohol

The price of the No. 1 beer brand in the country, Modelo, will also rise. Constellation Brands, which imports Modelo and Corona beer, could see its costs increase by 16% under Trump’s proposed tariff and would likely have to raise prices by about 4.5%, according to Chris Carey, a Wells Fargo equity analyst. Tequila made in Mexico would also be more expensive.

TRUMP ADMINISTRATION GIVES AUTOMAKERS ONE MONTH REPRIEVE FROM TARIFFS

Canada is the U.S.’s second-largest trade partner, including being its largest export partner and third-largest import partner. Canada accounts for 12.8% of imports into the U.S., according to the Census Bureau. In 2022, the U.S. imported $493.1 billion worth of goods from Mexico.

The Trump administration has also teased reciprocal tariffs beginning on April 2 after Mexico and Canada threatened to retaliate with their own levies.