[President Donald Trump said Monday that he still plans to impose a 25% tariff on Mexican and Canadian goods, despite initial threats to impose them on the day of the US-Mexico-Canada Agreement (USMCA) signing ceremony. The tariffs could strain American consumers’ wallets, as Mexico and Canada are the US’s top three trade partners, accounting for 30% of all goods imported last year.
US consumers will likely bear a portion of the cost of the tariffs, as retailers may not fully absorb the added expenses. Retailers have taken steps to mitigate the impact, such as stockpiling goods and shifting production away from countries that could be affected by tariffs. However, these measures may only delay the increase in prices.
Certain goods are more likely to be affected by the tariffs, including:
* Cars and car parts: The US imported $87 billion worth of motor vehicles and $64 billion worth of vehicle parts from Mexico last year. The auto sector is likely to be “apoplectic” about the tariffs, as car manufacturers have benefited from lower production costs in Mexico.
* Oil and gas: The US imported $97 billion worth of oil and gas from Canada last year. The tariffs could increase the cost of gas for Americans, particularly in the Great Lakes, Midwest, and Rockies regions.
* Food and beverages: The US imported $46 billion worth of agricultural products from Mexico, including fresh vegetables, beer, and distilled spirits. The tariffs could increase the cost of these products, leading to higher prices for consumers.
The tariffs will likely have a significant impact on American consumers, particularly in the following areas:
* Increased cost of cars and car parts
* Higher prices for food and beverages, such as avocados, beer, and tequila
* Increased cost of gas for Americans in certain regions
* Higher prices for agricultural products, including fresh fruits and vegetables
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