President Donald Trump has imposed tariffs on Canada and Mexico in a move that threatens to spark a trade war between America and its neighbours.
Goods entering the US from Canada and Mexico will now be slapped with a 25% charge. Canada has announced tariffs of its own in response and Mexico has said it will also retaliate to the measures.
Donald Trump says he wants to protect American industry, but many economists warn such tariffs could lead to prices rising for consumers in the US.
So what could get more expensive?
Cars
Cars will probably go up in price – by about $3,000 according to TD Economics.
That’s because parts cross the US, Canadian and Mexican borders multiple times before a vehicle is assembled.
Many well-known car brands, including Audi, BMW, Ford, General Motors and Honda trade parts and vehicles across the three countries.
Beer, whisky and tequila
Popular Mexican beers Modelo and Corona could get more expensive for US customers if the American companies importing them pass on the increased import taxes.
However, it’s also possible that rather than passing on the cost increase, firms could just import less.
Modelo became the number one beer brand in the US in 2023, and remains in the top spot, for now.
It’s more complex when it comes to spirits. The sector has been largely free of tariffs since the 1990s. Industry bodies from the US, Canada and Mexico issued a joint statement in advance of the tariffs being announced saying they were “deeply concerned”.
Houses
The US imports about a third of its softwood lumber from Canada each year, and that key building material would be hit by Trump’s suggested tariffs. Trump has said the US has “more lumber than we ever use”.
However, the National Association of Home Builders has urged the president to exempt building materials from the proposed tariffs “because of their harmful effect on housing affordability”.
Maple syrup
Canada’s billion-dollar maple syrup industry accounts for 75% of the world’s entire maple syrup production.
The majority of the sweet staple – around 90% – is produced in the province of Quebec, where the world’s sole strategic reserve of maple syrup was set up 24 years ago.
Fuel prices
Canada is America’s largest foreign supplier of crude oil. According to the most recent official trade figures, 61% of oil imported into the US between January and November last year came from Canada.
While 25% has been slapped on Canadian goods imported to the US, its energy faces a lower 10% tariff.
Avocados
One food import that American consumers could see a significant price increase in is avocados.
Grown primarily in Mexico due to its warm, humid climate, Mexican avocados make up nearly 90% of the US avocado market each year.
However, if tariffs come into force, the US Agriculture Department has warned that the cost of avocados – along with popular avocado-based dishes like guacamole – could surge.
