(NewsNation) — President-elect Donald Trump is picking a fight with America’s top trading partners, and that could come at a steep cost to U.S. consumers.
Trump is threatening to impose a 25% tariff on all imports from Canada and Mexico unless they stem the flow of migrants and drugs. He’s also vowed an additional 10% tariff on imports from China.
How will Trump’s tariffs impact everyday Americans?
Tariffs — which are taxes on goods imported from other countries — are paid by American companies but ultimately get passed on to U.S. consumers in the form of higher prices, economists warn.
In 2023, the U.S. imported over $3.1 trillion worth of goods — making it the world’s largest importer of goods. Three countries — Mexico, China and Canada — accounted for over 40% of the total value of all goods the U.S. imported.
If Trump follows through on his plan, it will raise the prices of cars from Mexico, smartphones from China and oil from Canada.
Here’s what the U.S. imports from its top three trading partners.
The following trade data is from the U.S. Census Bureau unless otherwise noted.
Small business owners brace for Trump’s proposed tariffs
What does the US import from Mexico?
Major imports from Mexico: Passenger vehicles, car parts, trucks, computers, fruits and vegetables
For the first time in more than two decades, Mexico surpassed China in 2023 as the leading source of goods imported to the United States.
Part of that is due to Mexico’s growing auto industry, which means tariffs could drive up prices for American car buyers.
General Motors makes Chevrolet Silverado pickups in Mexico. It’s also where Stellantis makes Dodge Rams.
A 25% tariff would increase the cost of vehicles and car parts, which accounted for $130 billion worth of U.S. imports from Mexico last year.
According to Mexico’s finance minister, Trump’s tariffs would raise the price of pickup trucks by $3,000. The average price for a new full-size pickup is already north of $65,000.
Mexico is the world’s seventh-largest passenger vehicle manufacturer, producing 3.5 million vehicles annually, according to the International Trade Administration. Of those, 88% are exported, and 76% are destined for the United States.
Even American-made cars could become more expensive. That’s because Mexico represents 43% of all U.S. auto part imports, larger than any other country, Reuters reported.
Consumers could also see higher prices at the grocery store, especially in the produce section. In 2023, Mexico supplied 63% of U.S. vegetable imports and 47% of fruit and nut imports, according to the USDA. Mexico also supplies the vast majority of beer imported to the U.S., about 80%.
Mexico: Trump tariffs will make pickups $3,000 more expensive
What does the US import from China?
Major imports from China: Smartphones, laptops, toys and games, lithium-ion batteries
Americans could see higher prices for consumer electronics if Trump imposes additional tariffs on China.
Last year, the U.S. imported nearly $45 billion worth of smartphones from China, over 75% of total U.S. smartphone imports. The vast majority of video game consoles imported into the U.S. also came from China.
While it’s true the U.S. has generally become less dependent on China in recent years, that’s not the case when it comes to consumer electronics and lithium-ion batteries.
In fact, China’s share in US battery imports has actually increased since 2017, the Atlantic Council noted in a recent report.
If Trump goes a step further — following through on the tariffs he proposed on the campaign trail — consumers could see laptop and tablet prices rise 46% and smartphone prices jump 26%, according to a recent Consumer Technology Association report.
Toys could also get more expensive. The U.S. imported over $42 billion worth of toys, games and sporting goods in 2023, 75% of which came from China.
What does the US import from Canada?
Major imports from Canada: Crude oil, vehicles, machinery, plastics
Canada is the largest source of U.S. energy imports, and a 25% tariff would drive up prices at the gas pump.
Last year, 60% of U.S. crude oil imports came from Canada, according to the U.S. Energy Information Administration.
In major U.S. markets where refiners process Canadian oil — like the Midwest, Great Lakes and Rockies — gas prices could rise as much as 75 cents per gallon, according to Patrick De Haan, head of petroleum analysis at GasBuddy.
“You can’t simply process different oil overnight. It would take investments/years,” De Haan wrote on X. “More US supply wouldn’t help.”
Canada is also the fifth largest producer of natural gas, exporting about half of its supply to the U.S. last year.
American homebuilders also rely on Canadian lumber, meaning the cost of building a house could rise.
“There is no getting around the fact that the U.S. must rely on Canada to fully meet its lumber needs,” Chuck Fowke, then-chairman of the National Association of Home Builders, wrote in a 2022 Seattle Times op-ed.
Fowke pointed out that roughly 30% of the lumber consumed in the U.S. was imported, and more than 85% of the imports came from Canada.
