US: Trump Tariffs Could Make These Things Expensive

US President Donald Trump announced to imposition of tariffs on imports from China, Canada, and Mexico. That has sparked a trade war and in a recent decision, Trump declared the tariffs on Mexico are on pause for a month.

The three countries have integrated supply chains with an estimated $2 billion worth of goods crossing the borders daily. While the three countries pledged to hit back, here are a few things that could get expensive for the people in the USA due to the tariffs.

Cars

Car prices are likely to go up at least by $3000 according to the analysts. The parts cross the US, Canadian, and Mexican borders multiple times before a vehicle is assembled. The higher taxes paid on the importing of parts will likely to passed on to customers in the form of car purchase costs.

Houses

The lumber from Canada is set to be imposed high tariffs while the National Association of Home Builders urged the president to exempt building materials from the proposed tariffs as it could affect housing affordability. The lumber import tariff could increase the cost of building homes. The customers are likely to pay higher home prices for the tariffs.

Fuel Prices

Canada is America’s largest foreign supplier of crude oil. With a 25% tariff on Canadian goods imported to the US, its energy faces a lower 10% tariff. Though the US doesn’t have a shortage of oil the refineries are designed to process the thicker crude oil from Canada and Mexico. If Canada decides to retaliate to the US tariffs by reducing crude oil exports, that leads to an increase in prices at gas pumps.

Beer and Tequila

Mexican beers Modelo and Corona are likely to get more expensive for US customers. Model is the number one beer brand in the US in 2023 and is still the top. The spirit sector has been largely free from tariffs since the 1990s. Also, certain brands such as Bourbon, Tennessee whiskey, tequila, and Canadian whiskey are distinctive products that can only be produced in their designated countries. Since these products cannot be moved, the supply gets impacted leading to a rise in price.

Maple Syrup and Avacado

Avocados are primarily in Mexico due to its warm climate and nearly 90% of avocados in the USA are from Mexico. The cost of avocados could go up.

Canada’s Maple syrup comprises 75 percent of the world’s entire maple syrup production. The increase in the price of maple syrup will hit directly on the households.