Tariffs on some of the U.S.'s biggest trading partners could increase costs at grocery stores, car dealerships, and other locations as businesses pass on the increased costs.
President Donald Trump announced over the weekend that the U.S. will charge an additional 25% tariff on goods from Canada and 10% more on items from China starting at midnight. A 25% tariff on imports from Mexico has been delayed for one month.
Economists said companies will generally raise prices to compensate for the higher cost of importing everything from avocados to auto parts. Economists from Yale University said domestic producers also tend to raise rates when tariffs are in effect. In total, they estimate tariffs could cost households an average of $1,250 more annually once they are implemented.
Here are the industries where price increases are most likely.
According to research JPMorgan highlighted Monday, more than 80% of toys brought into the U.S. come from China. Stores stock few items produced domestically, and Walmart (WMT), Target (TGT), and Amazon (AMZN) have a large market share of the sales in that category.
About 65% of auto parts come from countries being tariffed, most frequently from Mexico, JPMorgan said. Yale economists estimate that the price of vehicles and parts will increase by 3.9%. JPMorgan analysts initially expect auto and parts dealers to accept lower profit margins, meaning they may not pass all increased costs on to consumers.
Roughly 60% of consumer electronics are imported from China and Mexico, with limited domestic sourcing, JPMorgan said. Prices are expected to increase the most—5.7% on average—for computers and electronics, according to Yale economists.
More than half of furniture and home improvement materials were imported are imported from these three countries, JPMorgan said. Leather products will cost an average of 4.5% more, and textiles 3% more, based on Yale economists' calculations.
About 45% of groceries come from China, Canada and Mexico, JPMorgan said. Mexico was the main source of fruit and vegetables in 2023, according to data from the federal government. Fresh produce prices are forecasted to rise 1.8% on average, by Yale economists' estimates.
Trump announced a slightly lower tariff of 10% on Canadian energy, but the move is still expected to raise gas and electricity prices, particularly in northern states, according to Energy News Network. Yale economists said, on average, Americans can expect to pay $0.04 more per gallon of gas after price spikes that could initially be higher.
The U.S. imported nearly $5.7 billion in malt beer and $4.7 billion in liquors and liqueurs from Mexico in 2023—far more than was spent with other international suppliers in 2023, according to the most recent data available from the U.S. Department of Agriculture.
Shares of Constellation Brands (STZ), which imports Modelo and Corona beers from Mexico, fell after the tariffs were announced.
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