Trump’s Tariffs Begin: Here’s What Could Get More Expensive
From staples to luxuries and major purchases, new tariffs could bump up prices — though cars got a temporary reprieve.
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Updated on March 6.
Trump pauses tariffs on some Mexican and Canadian goods
On Thursday, Trump paused tariffs on all Mexican and Canadian imports under the 2020 free trade deal, known as the United States-Mexico-Canada Agreement. The pause will be in effect until April 2. Trump's tariffs on goods not included in the trade deal remain in effect.
For details on how President Donald Trump is implementing tariffs during his second term, see the latest tariff news.
As President Donald Trump makes progress on his plan to enact tariffs on all imported goods, it could have a profound effect on consumers’ wallets.
U.S. shoppers could soon begin to see prices rise for a wide range of items, including:
Everyday essentials like food, gas and clothing.
Luxuries like consumer electronics, jewelry and cosmetics.
Major purchases like new cars and homes.
Goods made by U.S. manufacturers using imported raw materials and equipment.
That’s because tariffs are paid by the domestic companies importing foreign goods and materials, and those companies tend to raise consumer prices to cover higher import costs. After Trump’s victory, U.S. companies selling a range of products confirmed that if his tariff plans are enacted, they’ll raise their prices.
Throughout Trump’s campaign, economists tried to quantify the impact his proposals could have on American consumers. Multiple studies projected that U.S. households would see their costs rise by thousands of dollars per year. If the expected price hikes reignite inflation, experts warn the economic fallout could go beyond higher prices to rattle the entire U.S. economy.
What we know about Trump’s tariff plans
On the campaign trail, Trump proposed a wide variety of tariffs, including across-the-board import tax hikes on all goods coming to the U.S. On Feb. 1, shortly after taking office, Trump invoked emergency powers to slap a 25% tariff on all goods imported from Canada and Mexico (with the exception of energy products from Canada, which will be hit with a 10% tariff); while increasing existing tariffs on Chinese imports by 10%.
After an initial one-month reprieve for Mexico and Canada, those tariffs took effect on Tuesday. Meanwhile, the initial tariff on goods from China increased to 20%.
The president’s threat of across-the-board tariffs have not yet materialized. Nor have they been ruled out. Trump has said he’ll soon announce 25% tariffs on goods coming to the U.S. from the European Union. In his first weeks in office, he has taken other steps on trade, as well. He initiated a broad review of trade agreements; floated plans to enact tariffs on autos, steel, aluminum, copper, pharmaceuticals, computer chips, semiconductors and agricultural products; and ordered an investigation into the effect of lumber imports from Canada on national security.
A 25% tariff on steel and aluminum imports is set to take effect March 12.
China and Canada have already enacted retaliatory tariffs, and Mexico is preparing similar measures. The resulting trade war could intensify consumer price hikes.
What could get more expensive
The U.S. is the biggest importer in the world, with the majority of foreign goods coming from China, Mexico and Canada, according to the Office of the U.S. Trade Representative.
Imports into the U.S. fall roughly into five categories that vary in how visible they are to the average consumer: food; consumer goods; vehicles, including engines and parts; industrial supplies and materials; and capital goods.
Food
The U.S. imported roughly $216.1 billion worth of food in 2024, according to U.S. Census Bureau data for December that was released on Feb. 5.
Some imported food and beverage items (like coffee beans, cocoa, sugar and some fruits) can’t be sourced domestically; other items aren’t produced at enough scale to meet current U.S. demand. That means consumers could expect food prices to rise, especially these types of items:
Fruit and fruit juices
Fish and shellfish
Bakery products
Vegetables
Meat products
Wine, beer and other alcoholic beverages
Food oils
Unroasted coffee
Dairy products and eggs
Tea and other spices
Nuts
Sugar
Cocoa beans
The U.S. imports a variety of food products from Mexico, Canada and China. For example, Mexican imports of fruit and vegetable products alone totaled $19.5 billion in 2023, according to international trade data. Meanwhile, Canada supplied $19.7 billion in foodstuffs that include baked goods and chocolate, as well as $9.65 billion worth of animal products, including beef and pork. Processed foodstuffs from China totaled $2.62 billion, including processed fruits and nuts, animal food and sauces and seasonings, among others items.
Consumer goods
Cell phones, clothes, household appliances, toys, sporting equipment, appliances, cosmetics, shoes, cookware — the list of imported consumer goods is long and totaled more than $806 billion in 2024, accounting for about a quarter of all imports recorded through December.
In public comments, U.S. companies that sell imported consumer goods — including Walmart, E.l.F. Beauty, Steve Madden, Columbia Sportswear and Stanley Black & Decker — have said that price hikes on some items are likely if Trump’s tariff plans come to fruition.
Additionally, a study by the Consumer Technology Association predicts tariffs would raise prices on laptops and tablets, video game consoles and smartphones.
A few examples highlighting the potential impact of newly enacted tariffs:
Chinese textile imports ranging from clothing to household linens totaled $36.1 billion in 2023.
Another $5.53 billion in textiles were imported from Mexico.
The U.S. also imported $57.6 billion in miscellaneous goods from China, including video games, toys, sports equipment, mattresses and light fixtures.
Autos
For now, automakers get a bit of a reprieve. Tariffs imposed on Canada and Mexico on March 4 will exempt the auto sector for one month.
The U.S. imported $474.3 billion in automotive vehicles, parts and engines in 2024, with Mexico and Canada playing critical roles in the North American supply chain. Passenger cars top the list in this category, but it also includes parts and accessories. That means in addition to new car purchases, imported goods needed to maintain or repair vehicles also would get more expensive.
As with other consumer goods retailers, companies selling cars and parts plan to pass on the cost of higher tariffs to consumers. And they won’t necessarily wait until the import tax hikes take effect. In an earnings call in September, AutoZone CEO Philip Daniele said the company would know how big tariffs would be and would raise prices ahead of time. “If we get tariffs, we will pass those tariff costs back to the consumer,” he said.
Industrial supplies and materials
Consumers might not personally notice the impact of higher prices on every raw material. But there’s one whose fluctuations the average American rarely overlooks: Crude oil.
That’s because the cost of oil plays a major role in determining the price of gas. While the U.S. is the largest single oil-producing country in the world, the industry relies on imported oil because aging U.S. refineries aren’t built to handle the quality of crude that’s produced domestically. So, with more than $167 billion spent on imported crude oil in 2024, consumers should expect tariffs to raise gas prices domestically.
Canada and Mexico are two of the nation’s leading sources of crude oil. The U.S. imported $133 billion worth of energy products in 2023, including crude oil, petroleum gas, refined petroleum, electricity and others. Those products will be subject to a lower 10% tariff under Trump’s current plans. But the U.S. also imported $20.4 billion worth of crude oil from Mexico, which will see a 25% tariff.
Regarding other goods in this category, it’s worth noting that, even though they’re purchased by producers, consumers won’t be off the hook completely. For example, higher prices for materials like lumber, steel, shingles, copper and other building supplies will raise costs for the construction industry. That could lead to less construction or more expensive projects, which could subsequently impact local housing markets.
Capital goods
Like industrial supplies, capital goods are a category of imports that stay relatively hidden from consumers because they’re used to produce consumer goods and services, rather than purchased by consumers. But their costs are baked into everything you buy. So even if the goods are produced domestically, it’s possible (even likely) that the machinery used to make those goods is imported.
The U.S. imported nearly $876 billion worth of capital goods in 2024, according to U.S. Census year-to-date data for November. Here are a few notable examples:
The U.S. imported more than $962 billion worth of capital goods in 2024, according to U.S. Census data for December. Here are a few notable examples:
Computers and computer accessories
Telecommunications equipment
Semiconductors
Medical equipment
Civilian aircraft, including engines and parts
Farm equipment
Chinese imports of broadcasting equipment, computers, office machine parts, electric batteries and other machinery totaled $208 billion in 2023. Mexican machinery imports totaled $165 billion, including computers, insulated wire, video displays, broadcasting equipment and other goods. And machinery from Canada was worth $42.5 billion that year, with gas turbines leading other items.
