President Donald Trump’s plan to impose tariffs on three of the nation’s biggest trading partners Saturday could have sweeping impact across the world, and raise prices for American consumers.
Trump will impose 25% tariffs on goods from Canada and Mexico, a decision he said he hopes decreases the amount of fentanyl and migrants coming into the U.S. across their borders. The president will also impose a 10% tariff on imports from China. On Friday, Canadian Prime Minister Justin Trudeau said Canada will retaliate and Mexican President Claudia Sheinbaum said her administration is planning a response to Trump’s threat — setting the stage for a possible international trade war.
White House Press Secretary Karoline Leavitt confirmed Friday that Trump intended to follow through on his plans, but did not answer exactly how the tariffs could affect American consumers in the grocery store or at the gas pump.
“I think Americans who are concerned about increased prices should look at what President Trump did in his first term,” Leavitt said. “He effectively implemented tariffs and the average inflation rate during the first Trump administration was 1.9%.”
Economists generally agree that tariffs increase inflation, but they don’t always. The tariffs Trump imposed during his first four years in office did not drastically raise prices. However, Trump’s first-term tariffs were not nearly as sweeping as the plan he is currently proposing.
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Trump told reporters Friday he plans to eventually impose additional tariffs on oil, steel, copper, computer chips, and pharmaceuticals. He acknowledged the tariffs imposed Saturday could cause some “temporary short term disruptions,” but that the American people will “understand.”
“You see the power of the tariff,” Trump said. “No one can compete with us because we have by far the biggest piggy bank.”
Tariffs are a tax on the exchange of goods between countries. Importers, primarily American companies in this instance, pay the tax. To cover that cost, these importers often raise prices for their customers gradually over time or all at once. The tariffs Trump plans to impose Saturday cover a wide range of products but may include a few possible exceptions. Here is a look at what goods could be more expensive to buy after the tariffs go into effect:
More:Tariffs, inflation, and retailers: How Trump’s potential tariffs could hit your wallet
What items from Canada could be impacted by Trump’s tariffs?
The following common imports from Canada to the U.S., according to the Bureau of Industry and Security and Trading Economics, could be affected by Trump’s tariffs:
- Wood
- Charcoal
- Aluminum
- Iron and steel appliances
- Cereal, flour, starch and milk products
- Rubbers
- Alcoholic beverages
- Carpets and other textile floor coverings
- Wool, animal hair, horsehair yarn and fabric
- Umbrellas, walking-sticks, seat-sticks, whips
- Cotton
- Photographic or cinematographic goods
- Cork products
- Printed books
What items from Mexico could be impacted by Trump’s tariffs?
Items the U.S. imports from Mexico, according to Trading Economics and the OEC, that could be affected by Trump’s tariff plan include:
- Cereals
- Paper products
- Processed fruits and nuts
- Tropical fruits
- Tomatoes, onions, lettuce and cabbage
- Pickled foods
- Fruit juice
- Fertilizers
- Dairy products, eggs and honey
- Cotton
- Beer and hard liquor
- Coffee, tea, mate and spices
- Meat, fish and seafood
- Sauces and seasonings
- Baked goods
- Avocados
- Raw sugar
What items from China could be impacted by Trump’s tariffs?
Common imports to the U.S. from China, according to Trading Economics and the U.S. Department of Agriculture, that could be affected by Trump’s tariff plan include:
- Fish and crustaceans
- Vegetable fats and oils
- Vegetables (especially corn), fruit and nuts
- Soaps, lubricants, waxes, candles, modeling pastes
- Cereal, flour, starch, wheat and milk products
- Coffee, tea and spices
- Sugar
- Cocoa
- Dairy products, eggs, honey and edible products
- Vinegar
- Apple juice
- Garlic
Jonathan Limehouse contributed to this report. Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
