10 things that could cost more under new tariffs

LOS ANGELES - President Donald Trump’s new tariffs on imports from Canada, Mexico, and China are set to take effect this Saturday, potentially driving up prices on everyday goods. 

The 25% tariff on U.S. neighbors—along with additional levies on Chinese imports—could impact everything from gas and groceries to electronics and home construction materials.

While tariffs are meant to pressure foreign trading partners, they often lead to higher costs for American consumers. Businesses typically pass these taxes on, meaning shoppers may soon see steeper prices at the pump, grocery stores, and car dealerships.

What’s at stake for U.S. consumers?

By the numbers:

With Trump’s tariffs taking effect, a wide range of products could soon become more expensive—from auto parts to smartphones. Here are 10 everyday goods that could see price hikes:

From auto parts to smartphones, here are 10 products that could see higher prices:

1. Cars and trucks could get even pricier

• 21% of cars sold in the U.S. come from Mexico or Canada.
• The U.S. imported $69 billion worth of vehicles from Mexico and $37 billion from Canada in 2023.
• Tariffs could add about $3,000 to the price of some vehicles.

2. Gas prices could rise at the pump

• Canada supplies 60% of U.S. crude oil imports.
• If tariffs include oil, gas prices could rise by 30 to 75 cents per gallon, TD Economics figures warn.

3. Avocados and other produce could get more expensive

• Mexico supplies 63% of U.S. imported vegetables and 47% of imported fruit and nuts.
• A 25% tariff would make groceries more expensive for American families.

4. Beer, tequila, and Canadian whiskey could take a hit

• 80% of imported beer in the U.S. comes from Mexico.
• U.S. imports of tequila and mezcal totaled $4.6 billion in 2023.

5. Smartphones and laptops could see price hikes

• The U.S. imports 75% of its smartphones from China.
• Tariffs could raise the price of smartphones by 26% and laptops by 46%.
• With most consumer electronics still manufactured in China, a new round of tariffs could drive up costs on everything from iPhones to gaming consoles.

6. Home construction could get more expensive

• Canada provides 85% of imported lumber to the U.S.
• Tariffs could increase homebuilding costs, impacting housing prices.
• Higher tariffs on Canadian lumber would raise costs for builders, potentially making new homes more expensive and worsening affordability issues in the housing market.

7. Auto repairs and parts could become more costly

• 43% of U.S. auto part imports come from Mexico.
• Tariffs could make routine vehicle repairs significantly more expensive.
• Even if you're not buying a new car, tariffs on auto parts could make maintenance and repairs costlier for American drivers.

8. Toys and video game consoles may see price jumps

• 75% of U.S. toy imports come from China.
• PlayStation, Xbox, and Nintendo consoles are all manufactured in China.
• A 10% tariff on Chinese imports could increase prices on popular holiday gifts like toys and gaming consoles.

9. Household appliances could cost more

• The U.S. imports large amounts of washing machines, refrigerators, and dishwashers from Mexico and China.
• With major brands manufacturing abroad, tariffs could make home appliances significantly more expensive for American families.

10. American farmers could suffer from retaliatory tariffs

• Canada and Mexico are major buyers of U.S. farm exports.
• Farmers could face retaliatory tariffs, similar to previous trade disputes.
• In past trade wars, American farmers were hit hard as trading partners responded with tariffs on U.S. exports like soybeans, pork, and dairy. If Canada and Mexico retaliate, American agriculture could take a serious hit.

What we know:

Trump’s tariffs on imports from Canada, Mexico, and China are expected to drive up costs for businesses, which could lead to higher prices on gas, groceries, and everyday essentials.

Industries like auto manufacturing and agriculture may also face significant economic ripple effects.

What we don't know:

It’s unclear how long these tariffs will remain in place or whether Canada, Mexico, and China will impose retaliatory measures on U.S. exports. 

Trump has also not yet confirmed whether oil imports from Canada and Mexico will be included, which could have a major impact on gas prices. 

Additionally, the full extent of the cost increases for consumers will depend on how companies adjust their pricing and whether they absorb any of the added expenses.

Economy