From Groceries to Cars, Tariffs Could Raise Prices for U.S. Consumers

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President Trump’s new tariffs on goods from Canada, Mexico and China are likely to result in higher prices for lots of products, including computers, tequila and gas.

Two white tractor-trailer trucks at a border crossing station.
Trucks coming from Mexico at a border crossing in Laredo, Texas, on Saturday.Credit...Gabriel V. Cárdenas for The New York Times

Danielle Kaye

Feb. 2, 2025Updated 3:06 p.m. ET

President Trump’s tariffs target countries that are major suppliers of a wide range of goods to the United States. For American families, the likely result is higher prices nearly everywhere they turn — in grocery aisles, car dealerships, electronics stores and at the pump.

Mr. Trump on Saturday signed executive orders imposing tariffs on the country’s three largest trading partners, which are set to take effect at 12:01 a.m. Eastern time on Tuesday. All goods imported from Canada and Mexico will be subject to a 25 percent tariff, except Canadian energy products, which will face a 10 percent tariff, according to the executive orders. The orders also imposed a 10 percent tariff on Chinese goods.

While Mr. Trump on Sunday acknowledged that his new tariffs could cause “some pain,” he has insisted that they will not substantially increase prices for Americans and that foreign countries will bear the brunt. But trading data and economic studies suggest that consumers in the United States will probably see higher prices on wide range of products, from vegetables and meat to cellphones and cars. While some companies may opt against passing on the cost of the tariff, many are likely to raise prices on their products.

“Because of the combination of these three countries, it’s going to be difficult to go down an aisle of a grocery store and not see some sort of inflationary effect,” said Jason Miller, a professor of supply chain management at Michigan State University.

Here’s what to know about what prices could rise:

Image

Avocados from Mexico for sale. Prices are expected to rise fairly quickly on produce from Mexico because grocers do not have substantial inventory.Credit...John G Mabanglo/EPA, via Shutterstock

Fresh produce, much of which is imported from Mexico, is one of the first categories where shoppers might notice an uptick in prices, potentially within a couple of weeks of the tariffs going into effect. These items, including avocados, tomatoes and strawberries, have a short shelf life. Grocery stores lack substantial inventory, meaning that consumers will quickly find produce that is subject to Mr. Trump’s tariffs.


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