President Donald Trump issued an executive order on Saturday night imposing substantial tariffs on imports from Mexico, Canada, and China, according to the Daily Mail.

In a social media post, the Republican president justified the move as a measure to “protect Americans,” urging the three nations to take stronger action against the production and export of illicit fentanyl. He also called on Canada and Mexico to step up efforts to curb illegal immigration into the United States.

If these tariffs remain in place, they could drive inflation higher. The prices of groceries, gasoline, housing, autos and other goods will most likely increase.

President Donald Trump declared an economic emergency to justify imposing new tariffs, setting duties of 10% on all imports from China and 25% on goods from Mexico and Canada.

Energy imports from Canada, including oil, natural gas, and electricity, will be subject to a reduced 10% tariff.

The tariffs, are set to take effect on Tuesday.

A report from the Budget Lab at Yale outlined the potential financial strain on American households, estimating that the tariffs could cost the average family approximately $1,170 annually.

 

 

Key Items That Will Be Affected:

Produce

Mexico plays a crucial role in supplying fresh fruits and vegetables to the U.S., particularly during the winter season.

According to the United States Department of Agriculture (USDA), Mexico accounts for 63% of U.S. vegetable imports and 47% of fruit and nut imports, making it a key contributor to the nation’s food supply per Newsweek.

Also, Canada exports fruits and vegetables, mostly grown in greenhouses. They also export maple syrup, beef and pork.

Auto Parts And Cars

For decades, automakers have developed supply chains that seamlessly span the United States, Mexico, and Canada.

Over 20% of the cars and light trucks sold in the United States are manufactured in Canada or Mexico. For example, the engines used in Ford F-Series pickups are produced in Canada, per the Daily Mail.

Crude Oil And Gas

Canada remains the largest foreign supplier of crude oil to the United States by a wide margin. Between January and November last year, Canada exported $90 billion worth of crude to the U.S., far surpassing Mexico, the second-largest supplier, at $11 billion.

According to the Daily Mail, imposing tariffs on Canadian oil imports could lead to higher gas prices, particularly in the Midwest. TD Economics estimates that Trump’s tariffs could drive U.S. gasoline prices up by 30 to 70 cents per gallon.

Alcohol

Tariffs would increase the cost for consumers enjoying a glass of Mexican tequila or Canadian whisky.

Smartphones

For the first time, an across-the-board 10% tariff on Chinese-made goods will apply to smartphones, potentially leading to price increases.