Americans can immediately pay more from car to avocado if the Trump administration is planning a flat -handed plan. Hard new tariff About three largest trading partners in the country starting on February 1st.
President Trump has imposed 25 % of tariffs on imports from Mexico and Canada this weekend, imposing 10 % of imports on imports from China, said on Friday, a white -house spokesman, Calorin Livit.
Mr. Trump explains tariffs as an import tariff paid by foreign countries, but in fact, according to the tax law in charge of tax, it is actually paid directly to the federal government by US companies. Companies usually do not swallow the cost, but usually raise the price of imported goods and collect all or part.
Who pays?
“If tariffs increase significantly … these costs are likely to be given to US consumers and companies,” said CBS, a law executive director of the Southern California University. I told Los Angeles.
“We import oil, wood, wood, and cement from Canada,” he added. “More than 20 % of agricultural products brought to the United States come from Mexico.”
One of the unknown is whether the Trump administration will open up some exceptions, such as petroleum and gas products. Canada offers about 20 % of petroleum used in the United States. In other words, a 25 % tariff on imports of Canada can add 30 to 40 cents by pump within a few days after the new duties come into effect. Analysis in Gasbuddy, I said。
According to Wendon Chang, an assistant professor of Applied Economics and Policy at Cornell University, higher costs may be higher for US consumers, but can be felt by the economy of Canada and Mexico. High sex. With 25 % tariffs, Canada and Mexico could lose 3.6 % of the actual GDP, respectively, and Zhang estimated the decrease of 0.3 % in the United States.
If the Trump administration’s duties are enabled, it can be more expensive for American shoppers:
Avocado, beef and other foods
Inflation pinch consumers may face the rapid increase in fruits, vegetables and nuts imported from Mexico, including avocado, so that they can be in time for the Super Bowl on February 9.
According to the US Ministry of Agriculture, the United States imported more than $ 45 billion from Mexico from Mexico in 2023. The United States also imports Mexico beer, tequila, other drinks and spirits.
The United States, on the other hand, imported about $ 40 billion of Canada, including beef, pork, grain, potatoes, and canora oils.
25 % tariffs can boost the prices of all these products.
“Food shops are operated in a very small margin,” said Scott Linsicom, Vice President of Kato Research Institute’s general economics. “They can’t eat tariffs … Especially when you (90 %) of them (90 %) talk about avocado coming from Mexico. I’m talking “
car
American consumers are increasingly purchasing cars built in Canada or Mexico or using parts imported from those countries. According to S & P Global Mobility, the United States imported $ 69 billion and light trucks from Mexico in 2023, importing more than 37 billion dollars from Canada.
In addition, about $ 20 billion from Canada, about $ 78 billion of cars born from Mexico. For example, the engine used in the Ford’s F Series pickup truck comes from Canada.
TD ECONOMICS estimates that US importers are expected to expand additional tariffs on vehicle stickers, so the average US automobile prices could rise by about $ 3,000. According to the Kelley Blue Book, the average new car will be on sale for $ 50 and the average used car for $ 26,000.
wood
According to Rajan Palajuri, an associate professor of forest economics and policy of North Carolina State University, about one -third of coniferous materials used in the United States are imported from Canada every year.
Tacking a 25 % tariff on Canadian wood can cause a “supply shock,” wrote on the December blog post in the December blog post. “Regarding wood, the United States still need Canada supplies to satisfy domestic consumption demand,” said the group.
Nevertheless, some of the slow US housing markets, which are suppressed by the mortgage rate that remain close to 7 %, may make it difficult for companies to take over new tariffs through higher timber prices. Economist said.
“Although the price of wood is expected to rise, the Oxford Economics will be delayed in the US housing collection, which will burden higher prices, and will limit the range that exporters can take over the rise in prices.” It is described in the survey notebook on January 31st.
Contributed to this report.
