Tomatoes, beer, fuel… here's what may get more expensive for Americans as Trump’s tariffs kick in

US President Donald Trump. (Image: AP)

President Donald Trump, who has slapped steep tariffs on products from Mexico, Canada and China, US' three largest trading partners, may cause "short term" pain for Americans.

"Will there be some pain? Yes, maybe (and maybe not!)" Trump said on his Truth Social media platform on February 2. "But we will Make America Great Again, and it will all be worth the price that must be paid."

Trump, who made  good of his poll promise, will on February 3 talk to the leaders of Canada and Mexico, which have announced retaliatory tariffs, but has downplayed expectations that he would change his mind, Reuters said.

This tariffs, which take effect the next day, could significantly increase prices of goods that America imports from these countries. All goods imported from Canada and Mexico will be subject to a 25 percent tariff except Canadian energy products, which will face a 10 percent levy. Chinese goods, which already face several curbs, will be charged a 10 percent tariff.

Analysts have warned the ensuing trade war, which is roiling the market, would likely hit US growth and raise consumer prices over the short term.

While some companies may not pass the cost of the tariff, many are likely to raise prices. “Because of the combination of these three countries, it’s going to be difficult to go down an aisle of a grocery store and not see some sort of inflationary effect,” The New York Times quoted Jason Miller, a professor of supply chain management at Michigan State University, as saying.

Also Read: What Trump Tariffs means for the Indian economy and markets

Tomatoes, T-shirts, crude oil, liquor are among several items that may get more expensive.

Food

Mexico is the largest supplier of fruit and vegetables to the US, while Canada leads in exports of grain, poultry, livestock and meats, among others.

Farm products from Mexico and Canada could become more expensive for consumers, as grocery retailers operate on thinner profit margins than most industries. With little room to absorb higher tariff costs, the grocers may have to pass them on to shoppers.

According to CNN, US imported $46 billion of agricultural products, including tomatoes and avocados, from Mexico in 2024. It included $8.3 billion worth of fresh vegetables, $5.9 billion of beer and $5 billion of distilled spirits. The biggest category of farm imports from Mexico was fresh fruits, of which the US imported $9 billion worth, with avocados accounting for $3.1 billion of that shipments.

Fuel and energy

Canada is the top exporter of oil and gas to the US. It imported $97 billion worth gas and oil in 2024. The tariff on Canadian energy products is only 10 percent but the levy will still threatens to disrupt the US gas and oil industry, which is highly dependent on Canadian oil. Roughly 60 percent of the oil that the US imports comes from Canada.

Cars and car parts

Tariffs are expected to raise the prices of automobiles, since vehicles were also the second-largest good the US imported from Canada in 2024 through November for a total of $34 billion. The US imported $87 billion worth motor vehicles and $64 billion worth of vehicle parts from Mexico during the year.

Read: India seeks to shake off ‘Tariff King’ label in reply to Trump

Beer and Liquor

The tariffs are poised to hit liquor aisles, too, especially beer and tequila. The tariff would be a stiff penalty on some of America’s favourite libations, including tequila, which can be made only in Mexico and the No 1 beer brand in the nation, Modelo, reported CNN.

Constellation Brands, which imports Modelo and Corona beer as well as Casa Noble tequila from Mexico, could see its costs leap 16 percent under Trump’s proposed tariff and would likely have to raise prices by about 4.5 percent, CNN quoted a Wells Fargo equity analyst as saying.

The US imported $5.69 billion of beer and $4.81 billion of alcohol from Mexico in 2023, according to International Trade Administration data. When combined, the two categories were the 10th-biggest import from Mexico 2024r and mark a sharp 126 percent increase from 2017, data shows.

Other goods that may get expensive

Electronics, the top good imported by the US form China in 2024, can get more expensive. In a couple of months, from cellphones and computers to video games, shoppers can expect a rise in prices.

The US is also reliant on China for toys and sporting equipment, including items such as footballs, soccer balls and baseballs. The United States gets 75 percent of its imported toys and sports equipment from China.

Lumber is another product that is likely to be affected, around 30 percent of which comes from Canada. Tariffs on softwood lumber could increase the cost of building houses, further worsening the house affordability crisis in America.

According to a New York Times report, more than 70 percent of the imports of two essential materials that home builders rely on — softwood lumber and gypsum, which is used for drywall — come from Canada and Mexico, according to the National Association of Home Builders.