Six things that could get more expensive for Americans under Trump tariffs

US President Donald Trump has announced and imposed a range of tariffs – or import taxes – on billions of dollars worth of goods coming into the US from some of its top trading partners.

In March, tariffs on steel and aluminium imported to the US came into effect, as well as tariffs on other products from Mexico, Canada, and China specifically.

In addition, Trump has promised to announce a raft of new tariffs on Wednesday which will hit “all countries” and he is expected to enact some previously delayed tariffs on Mexico and Canada.

Then, on Thursday, tariffs on cars coming into the US will come into effect. Tariffs on certain car parts are set to start in May or later.

Economists have warned these tariffs – and those introduced in response by other countries – could put prices up for American consumers.

That’s because the tax is paid by the domestic company importing the goods, which may choose to pass the cost on to customers, or to reduce imports, meaning fewer products are available.

So which things could become more expensive?

The US imported about eight million cars last year – accounting for about $240bn (£186bn) in trade.

Many US car companies also have operations in Mexico and Canada, set up under the terms of the longstanding free trade agreement between them.

Component parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.

The new tariffs on car parts from Canada and Mexico are exempt for now while US customs and border patrol set up a system to assess the duties.

Anderson Economic Group has estimated that tariffs on parts just from Canada and Mexico could lead to costs rising by roughly $4,000-$10,000 depending on the vehicle.

Experts say these costs are likely to be passed on to customers, though Trump himself has said he “couldn’t care less” if that happens as he believes it will encourage Americans to buy American-made cars instead.

Popular Mexican beers Modelo and Corona could get more expensive for US customers if the American companies importing them pass on the increased import taxes.

Meanwhile, representatives from the American, Canadian, and Mexican spirit industries argued in a joint statement that drinks like bourbon, Tennessee whiskey, tequila, and Canadian whisky “can only be produced in their designated countries”.

So, given they have to be made in those locations, supplies might be affected, leading to price rises.

Trump has also threatened a 200% tariff on alcohol from the EU, which could make Spanish wine, French champagne, or German beer more expensive for Americans, though it is not clear if this will be carried out.

The US imports about a third of its softwood lumber from Canada each year, and that key building material could be hit by Trump’s tariffs.

Trump has said the US has “more lumber than we ever use”.

However, the National Association of Home Builders (NAHB) has “serious concerns” that the tariffs on lumber could increase the cost of building homes – which are mostly made out of wood in the US – and also put off developers building new homes.

“Consumers end up paying for the tariffs in the form of higher home prices,” the NAHB said.

Imports from the rest of the world could also be affected.

On 1 March, Trump ordered an investigation into whether the US should place additional tariffs on most lumber and timber imports, regardless of their country of origin, or create incentives to boost domestic production.

Findings are due towards the end of 2025.

Canada’s billion-dollar maple syrup industry accounts for 75% of global production.

The majority of the sweet staple – around 90% – is produced in the province of Quebec, where the world’s sole strategic reserve of maple syrup was set up 24 years ago.

“That maple syrup is going to become more expensive. And that’s a direct price increase that households will face,” said Thomas Sampson from the London School of Economics.

“If I buy goods that are domestically produced in the US, but [which use] inputs from Canada, the price of those goods is also going to go up,” he added.

Canada is America’s largest foreign supplier of crude oil.

According to the most recent official trade figures, 61% of oil imported into the US between January and November 2024 came from Canada.

While the US has introduced a 25% tariff on most goods imported from Canada, Canadian energy faces a lower rate of 10%.

The US doesn’t have a shortage of oil, but its refineries are designed to process so-called “heavier” – or thicker – crude oil, which mostly comes from Canada, with some from Mexico.

“Many refineries need heavier crude oil to maximize flexibility of gasoline, diesel and jet fuel production,” according to the American Fuel and Petrochemical Manufacturers.

That means if Canada decided to reduce crude oil exports in retaliation against US tariffs, it could push up fuel prices.

Avocados thrive in the Mexican climate.

Nearly 90% of the avocados consumed in the US come from Mexico.

The US Agriculture Department has warned that tariffs on Mexican fruit and vegetables could increase the cost of avocados.

Related dishes like guacamole could also become more expensive.

Additional reporting by Lucy Acheson