Will prices rise? What to know about Trump’s customs rates

On February 1, 2025By Littum

President Donald Trump’s plan to introduce duties for three of the country’s largest trading partners on Saturday could have swept influence worldwide and raise prices for US consumers.

Trump imposes 25% tariffs on goods from Canada and Mexico, a decision he said he hopes the amount of fentanyl and migrants will enter the United States across their borders. The president also imposes a 10% duty on imports from China. Friday, Canadian Prime Minister Justin Trudeau said Canada will be retaliated and Mexican President Claudia Sheinbaum said her administration is planning a response To Trump’s threat – to set the scene for a possible international trade war.

The White House press secretary Karoline Leavitt confirmed on Friday that Trump intended to follow his plans, but did not answer exactly how 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 period,” Leavitt said. “He effectively implemented tariffs, and the average rate of inflation during the first Trump administration was 1.9%.”

Economists generally agree that duty increases inflation, but they do not always. The tariffs that Trump introduced during his first four years in office did not raise prices drastically. However, Trump’s first term tariffs were not as celebrating as the plan he is currently proposing.

Trump told journalists on Friday that he will eventually plan to impose additional tariffs on oil, steel, copper, computer chips and pharmaceutical drugs. He acknowledged that the tariffs imposed on Saturday could cause some “temporary disruptions in the short term,” but that the American people will “understand.”

“You see the power of customs,” 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 US companies in this case, pay the tax. To cover these costs, these importers often raise prices for their customers gradually over time or all at once. The Tariffs Trump plan to impose a wide range of products on Saturday, but may include a few possible exceptions. Here’s a look at what items can be more expensive to buy after tariffs take effect:

Which items from Canada could be affected by Trump’s customs rates?

The following ordinary imports from Canada to the US according to Bureau of Industry and Security and Trade economycould be affected by Trump’s tariffs:

Wood
Charcoal
Aluminum
Iron and steel appliances
Grain, flour, starch and dairy products
Rubber
Alcoholic beverages
Blankets and other textile floor coatings
Wool, animal hair, horse hair yarn and fabric
Umbrellas, walking sticks, seat-sticks, whipping whips
Cotton
Photographic or kinematographic goods
Cork products
Printed books

Which items from Mexico could be affected by Trump’s tariffs?

Goods that the US imports from Mexico, according to Trade economy and OECthat could be affected by Trump’s customs plan includes:

Cereal
Paper products
Processed fruits and nuts
Tropical fruits
Tomatoes, onions, lettuce and cabbage
Pickled foods
Fruit juice
Fertilizer
Dairy products, eggs and honey
Cotton
Beer and hard spirits
Coffee, tea, mate and spices
Meat, seafood
Sauces and spices
Bakery
Avocado
Raw sugar

Which items from China could be affected by Trump’s tariffs?

Common Import to the United States from China, according to Trade economy and US Department of Agriculturethat could be affected by Trump’s customs plan includes:

Fish and crustaceans
Vegetable fat and oils
Vegetables (especially corn), fruit and nuts
Soaps, lubricants, wax, candles, modeling of pastes
Grain, flour, starch, wheat and dairy products
Coffee, tea and spices
Sugar
Cocoa
Dairy products, eggs, honey and edible products
Vinegar
Apple juice
Garlic

Jonathan Limehouse contributed to this report. Well Rachel Barber at [email protected] and follow her on x @rachelbarber_