Here is a breakdown of how Trump’s tariffs could affect you

China’s latest tariffs on Mexican, Canada and Mexico threaten to damp the flow of fentanyl and other illegal drugs into the United States

China is a major source of the precursor chemicals to make fentanyl, and Beijing says it has gone out of its way to help curb the flow of the synthetic opioid into America. After Trump announced his latest tariffs, China warned that they would damage prospects for future cooperation and vowed to launch a case against them in the WTO.

“[T]he underlying economic and political grievances between China and the U.S. run far deeper than those between the U.S. and its neighbours,” he said.

The tariffs on Mexican and Canadian goods have been put on hold for at least one month after both countries agreed to beef up border security.

Julian Evans-Pritchard, head of China economics at the research firm Capital Economics, said in a note the retaliatory measures were “fairly modest.” He estimated that the targeted goods represent, at most, $20 billion worth of annual imports, or around 12% of China’s total imports from the U.S. — a fraction of the more than $450 billion in Chinese goods subject to the 10% U.S. tariff.

Trump signed orders for the tariffs against China, Canada and Mexico over the weekend in a bid to pressure those three countries to do more to stop the flow of migrants and illegal drugs, including fentanyl, into the United States.

China’s commerce ministry also put two U.S. firms – PVH Group and Illumina, Inc. – on its “unreliable entity” list, saying they violated market principles and adopted discriminatory measures against Chinese companies. Tommy Hilfiger and Calvin Klein are brands of a company called PVH.

In addition, China’s market regulator announced an anti-monopoly investigation into Google. And the commerce ministry and customs administration jointly announced fresh export controls on a handful of rare metals, including tungsten, indium and molybdenum. The announcement about the investigations did not say anything about the U.S. tariffs.

The analysts at the investment bank estimate that the proposed tariffs on Mexico, Canada and China will increase the price of vehicles in the US by 2%.

The Chinese finance ministry stated that the U.S. tariffs were not in keeping with WTO rules and that they would disrupt normal trade between China and the US.

Trump’s tariffs could impact you and your wallet: Where’s the price of gasoline in the U.S., Mexico and Canada?

Gas prices remained flat at the announcement of the tariffs over the weekend. It’s not yet known whether there will be long-term effects on prices at the pump.

But there may well be. In the Midwest and Mountain West, most of the imports come from Canada, according to the vice president of general economics and trade at the Cato Institute. American refineries can’t easily switch to lighter oil from the US because they are used to using heavier oil from Canada.

The U.S. is struggling with a housing shortage, and new housing is expensive to build. Homebuilding will be more expensive because of the tariffs on building materials.

According to the association, 70% of the imports of two important building materials, lumber and gypsum, come from Canada and Mexico.

But U.S. reliance on Canadian lumber has declined in recent years due to a combination of fires, beetle infestation and tariffs, says Lincicome, which could mute some of the price effects. There’s already a 14.54% tariff on Canadian softwood lumber.

The tariffs would raise the costs on cars that are imported from Mexico and Canada, as reported by NPR. Cars assembled in the U.S. would also see their prices rise, as many of their parts are sourced from companies in Canada or Mexico.

Carmaking is very integrated in North America including the US, Mexico and Canada. Parts go back and forth between the countries throughout the production process.

Source: Here’s how Trump’s tariffs could impact you and your wallet

Mexican Imports As a Fuel For The U.S. Customs Enforcement Reforms And Trump’s Cuts For US Consumer Products And Consumer Electronics

It’s also winter, when more of the produce consumed in the U.S. comes from Mexico. Tomatoes are a crop that is grown in the US during the summer but not in the winter. So your imported tomato would cost more too.

In 2021, Mexico provided almost two-thirds of U.S. vegetable imports and about half of U.S. fruit and tree nut imports, according to the U.S. Agriculture Department.

She bought an extra bag of avocados and some frozen strawberries to use in the fridge. “If you’re going to buy a car, maybe think about doing that,” she says.

Lincicome says that there’s not much you can do. He says that buying American won’t help, because American producers will raise their prices to nearly match their competitors.

“We make most of our toilet paper here, but because everybody freaked out, went out and bought it,” says Lincicome. If you start getting really jittery and start making lots of purchases, you can cause high prices and shortages if there is no effect on tariffs. So I wouldn’t really recommend doing that.”

A tariff is a tax on goods imported from abroad. The higher prices will persist despite Trump’s claims that other countries will pay for his tariffs.

For one thing, importers pay a tariffs based on cost price rather than retail price. And Apple might try to ramp up its production in other countries like India, or it could decide to eat the cost of the tariffs — especially since competitor Samsung produces many of its phones in South Korea or Vietnam and won’t feel the same blow.

The tariffs Trump imposed during his first term were more targeted. This time around, more Americans will feel the impact. Among the imports affected are a whole slew of consumer goods, including footwear, toys, video game consoles and electronics.

Businesses in the U.S. import a lot of components from China, as well as machinery and equipment used in their own production processes. So the cost of production in the U.S. will go up too.

A Tax Foundation analysis found that if the tariffs were imposed, it would result in an average tax increase of more than $800 per US household in five years.