Impact on YOU – Trump Announced Tariffs on Mexico, Canada and Chinese Goods

Trump announced on November 25,2024 proposed  new tariffs on Mexico and Canada- 25% and add another 10% to Chinese goods. What remains to be known if these percentages apply to all goods or selected goods. For example Mexico supplies 51% of fresh fruit and 69% of fresh vegetables in terms of value to the USA.

Electronics and appliances are likely to be impacted so now might be a time to consider buying these NOW. Tariffs raise prices by consumers because US companies have to pay the tariff which means they either lower their profits (unlikely) or pass on the costs with increased prices to consumers.

  • Auto prices are also likely to be impacted including:
  • Honda- 80% of Mexican products go to USA
  • Nissan- Sentra, Versa and Kicks Models
  • VW- largest auto plant in Mexico and one of the largest in VW Group- Jetta, Tiguan and Taos

Here is what the US imports from Mexico:

  • Motor vehicles

In 2023, the US imported $85 billion worth of motor vehicles from Mexico. Mexico produces 16 out of every 100 cars sold in the US.

  • Motor vehicle parts

In 2023, the US imported $66.3 billion worth of motor vehicle parts from Mexico.

  • Computer equipment

In 2023, the US imported $28.6 billion worth of computer equipment from Mexico.

  • Oil and gas

In 2023, the US imported $19.8 billion worth of oil and gas from Mexico. Mexico is one of the world’s largest producers of oil.

  • Electrical equipment

In 2023, the US imported $18.8 billion worth of electrical equipment from Mexico.

  • Fruits and vegetables

Mexico supplies almost two-thirds of the US’s vegetable imports and about half of its fruit and tree nut imports.

Other products the US imports from Mexico include electronics and appliances, medical instruments, beer, plastic items, and gems and precious metals.

The United States imports a variety of food and appliances from Mexico, including:

  • Agricultural products: In 2022, 83.6% of agricultural imports from Mexico were vegetables, fruit, beverages, or distilled spirits. Mexico and Canada supplied 51% and 2% of U.S. fresh fruit imports, respectively, in 2022.
  • Appliances and electronics: The United States imports electronics and appliances from Mexico.
  • Vehicles: Mexico produces 16 out of every 100 cars sold in the United States.

Other goods the United States imports from Mexico include:

  • Auto parts and equipment
  • Crude petroleum
  • Medical instruments
  • Beer
  • Plastic items
  • Gems and precious metals

What does the US Import from Canada

  • Food: The US imports billions of dollars of food from Canada each year, including:
    • Seafood: Fish, crustaceans, mollusks, and aquatics invertebrates
    • Produce: Edible vegetables, roots, and tubers
    • Dairy: Dairy products
    • Meat: Beef and pork
    • Baked goods: Baked goods, including breads, bagels, doughnuts, pies, and cakes
    • Chocolate: Chocolate
    • Frozen potatoes: Frozen fries and other prepared potatoes
    • Canola oil: Canola oil
    • Maple syrup: Maple syrup
    • Cranberries: Cranberries (most come from Wisconsin and Massachusetts in the USA)
  • Other products: The US also imports pine lumber and rubbers from Canada.
  • Petroleum: Crude oil, petroleum gas, and refined petroleum
  • Vehicles: Cars, car parts, and delivery trucks
  • Machinery: Turbines, engines, and construction equipment parts
  • Plastics: Plastics and related products
  • Pharmaceuticals: Pharmaceuticals and related products
  • Metals: Aluminum, iron, gold, and other metals
  • Wood and paper: Wood, cork, paper, and printed books
  • Agricultural products: Agricultural products

In 2023, the United States imported more than $418 billion in goods from Canada, making Canada the United States’ second-ranked trading partner.