These prices could climb within a few days if Trump slams the duty of Canada and Mexico

Tariffs on items from Mexico and Canada set to come into force could increase the price of a gallon of gasoline for some drivers with as much as 70 cents and send grocery bills, experts told ABC News.

The Trump administration repeated on Friday to beat 25% duty on all products from Canada and Mexico on February 1st. These countries make up two of the three largest US trading partners, government data shows.

Tariffs of this magnitude would probably increase the prices that US shoppers pay, as importers typically transfer a proportion of the cost of these higher taxes to consumers, experts say. The policy could raise prices for a number of products ranging from tomatoes to tequila to car parts.

“The scary thing is the list of products is very, very long,” said Jason Miller, a professor of supply chain management at Michigan State University.

However, the award impact remains unclear as companies within the supply chain could choose to take on gearing in international negotiations.

In response to ABC News’ request for comment, a spokesman for the White House of White House proclaimed Trump’s previous economic policies, including customs.

“In his first administration, President Trump introduced an America First Economic Agenda of Tariffs, tax cuts, deregulation and a release of American energy that resulted in historical job, wages and investment growth without inflation. In his second administration, President Trump will again use tariffs to smooth the rules of the game and initiate a new era with growth and prosperity for American industry and workers, “spokesman for the White House Kush Desai told ABC News.

Here’s what to know about what products could see price increases as a result of customs, according to experts:

Gas

Mexico and Canada account for 70% of the US import of crude oil, which constitutes a key input to the nation’s gasoline supply, according to US Energy Information Administrationa government agency.

This import comes primarily from Canada, which sends crude oil to us refineries built specifically to treat raw and redistribute it as car -clear gasoline, Timothy Fitzgerald, professor of business economics at the University of Tennessee, who studies the petroleum industry, told ABC News.

Gasoline, which comes from as Canadian raw when customers in Upper Midwest as well as some along the east and west coasts, Fitzgerald said. For these drivers, he added, prices could rise between 40 and 70 cents per day. Gallon of gasoline.

“You could definitely look at 50 cent-a-gallon rises in many parts of the country,” Fitzgerald added, noting that the effects would be limited to the regions that depend on imported crude oil.

The customs -related price increase can be combined with a seasonal price increase to take effect within weeks, as the demand for gas typically grows as the journey is gathering in the warmer spring weather, experts said.

This seasonal price impact could add another 30 cents per year. Gallon, which sets the total increase in gasoline prices to $ 1 per Gallon if the customs dollars remain in place at the beginning of spring, Fitzgerald said.

Tomatoes and avocado

US imported $ 38.5 billion in agricultural commodities from Mexico in 2023, making it the top recipient of such products, US Department of Agriculture Data showed. This import includes more than $ 3 billion worth of fresh fruits and vegetables.

Mexican imports account for a large part of some fruits and vegetables that are routinely eaten by Americans.

About 90% of avocados eaten in the United States last year originated in Mexico, the USDA data showed. Other products with a high concentration of Mexican imports include tomatoes, cucumbers, paprika, jalapenos, lime and mango, Miller said.

It would be difficult for the United States to replace these goods with domestic production or an alternative supplier, making it likely that prices would rise significantly if tariffs take effect, he added.

“You would definitely expect to see an impact on prices,” Miller said.

The United States also imports large quantities of beer, tequila and other alcoholic beverages from Mexico, experts said. In 2022, the US imported approx. 26 billion dollars value of alcoholic beverages from Mexico, according to USDA.

“Don’t forget all the beer we import from Mexico,” Miller said.

Cars and car parts

Car manufacturers and consumers depend on the automotive industry’s deep ties to Canada and Mexico, making tariffs a threat to prices, experts say.

Mexico and Canada make up the two top US trading partners for both finished motor vehicles and car parts, according to one Cato Institute Analysis of data from the US International Trade Commission.

By 2023, Canada and Mexico signed for nearly $ 120 billion worth of US motor vehicle imports, which amounted to approx. 47% of all such vehicles imported that year. Canada and Mexico made up almost the same proportion of import of car parts that year, the Cato Institute’s analysis showed.

“The operations for car companies on both sides of the border will be enormously influenced by these tariffs,” Robert Lawrence, professor of trade and investment at Harvard University’s Kennedy School of Government, told ABC News.