Increases in basic goods such as vegetables, fruit and cars are expected to cause the new tariffs imposed by Donald Trump’s president, up to 25% on products from Canada and Mexico and 10% on products from China. In particular, economists have warned that US-based companies paying more to import products will increase their prices to absorb at least a part of the extra costs, according to Bloomberg. CORVERSE In a worse case scenario, where buyers do not replace American products and 100% of customs are passed on to consumers, the blow to the second may even amount to $835 per person, with a four-member family facing an increase of $3,242, according to ING estimates based on the latest quarterly commercial data. The impact will not be directly felt, but there will be a compression of purchasing power in the medium and long term, James Knightley (James Knightley), ING’s chief international economist, said in a note. Customs duties are due to enter into force at 12:01 a.m. on Tuesday (4.01.2025). The main categories of imported products from the three countries that could become more expensive are: ADVERSE Vegetables and Fruits An important part of the fresh products consumed by Americans come from the other side of the border. About half of the vegetables and 40% of the fruits imported by the US come from Mexico. In addition to supplying over 90% of the avocado consumed by Americans, the Latin American country is the leading foreign supplier of peppers, cucumbers and pumpkins. Alcoholic drinks Alcoholic beverages account for almost a quarter of all American agricultural imports from Mexico in 2023. Four out of five beers entering the US from abroad come from the south of the border, as do half of all the hard drinks imported by the country – mainly tequila and mescal. Canada is also a leading supplier of distilled alcoholic beverages, including liqueurs and whiskey. Cars Almost half of American car replacement imports come from Canada and Mexico and American brands are highly dependent on these products. With regard to specific products such as airbags and safety belts, nearly 80% of what the US imports come from its neighbours in North America. In addition, half of American imports of assembled cars come from these two countries. “The tariffs on these goods mean that the US will actually invoice themselves,” noted Nicole Gorton – Caratelli of Bloomberg Economics. “Specially American car manufacturers – a long-term symbol of American production – would feel significant pain”. Clothing With China representing nearly 30% of all American clothing imports, Bloomberg Intelligence estimates that clothing prices could increase up to 2% for brands most based on suppliers from the Asian country, including Aritzia and Tommy Bahama. Some companies have announced plans to reduce their supplies from China, with Steven Madden stating that she plans to reduce the number of products manufactured in China by 40% within one year. Top imports Customs are the answer to what Trump says is the failure of the three countries to help prevent the flow of undocumented immigrants and illegal drugs, such as fentanyl, through the US border. From Mexico, the main US imports in value include cars, trucks, buses and electronics. Missions from Canada dominate oil and cars, as well as vehicle parts, bauxite and aluminium. Energy imports from the country, including oil and electricity, will escape the full 25% levy and face a 10% duty, according to White House officials. As they said, this aims to minimize upward pressures on petrol and oil prices for heating homes. From China, mobile phones, computers, and games are at the top of the list.
Which products will be expensive due to Trump’s tariffs
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