The Trump Casserage phrases on Mexico and Canada were able to land this weekend. Here are some items at the intersection

President Donald Trump said this week that it Tariffs on American neighbors Canada and Mexico arrive on Saturday. The two nations are not only close geographical, but also financial.

The company between the North American nations is now exceeding China, a total of $ 1.8 trillion in 2023. That’s far greater than the $ 643 billion in trading that the United States did with China that year.

The following are only a few imported items that could first be hit.

A ‘grenade’ lobbed into auto production

For decades, car companies have built supply chains crossing the boundaries of the United States, Mexico and Canada. More than one in five of the cars and lightweight trucks sold in the United States were built in Canada or Mexico, according to the S&P Global Mobility. In 2023, the US imported $ 69 billion dollars and lightweight trucks from Mexico – more than any other country – and $ 37 billion from Canada. Another $ 78 billion in car parts came from Mexico and $ 20 billion from Canada. The engines in the Ford F-Series pickups and the iconic Mustang Sports Coupe, for example, come from Canada.

“You have engines and car seats and other things that cross the border several times before entering a finished vehicle,” said Catos Lincicome. “You have US parts for Mexico to be put in vehicles that are then sent back to the United States.

“You throw 25% duties in all that, and it’s just a grenade. ” ”

In a report on Tuesday, S&P Global Mobility figured that “Importers are likely to pass the most if not all, of this (cost) increase to consumers. ” ‘TD Economics notes that average US car prices could rise by about $ 3,000 – this to a Time when the average new car is already going for $ 50,000 and the average used car for $ 26,000, according to Kelley Blue Book.

Higher prices at the pump

Canada is far from America’s largest foreign supplier of crude oil. From January to November last year, Canada sent a value of $ 90 billion.

For many American refineries, there is not much choice. Canada produces the “type of crude oil that US refineries are directed to treat, ” said Lincicome.” It’s a heavier raw. All fracking and all the oil and gas we produce here in the US – or most of it – is A lighter raw that a lot of American refineries do not treat, especially in the Midwest.

Trump said Thursday that he have not yet decided whether to include Canadian and Mexico -Oil In the tariffs he still plans on Saturday.

If he taxed Canadian oil imports, Lincicome said, “How the heck is shaking out? My guess is that it shakes out just through higher gas prices, especially in the midwest. ” TD Economics shows that Trump’s tariffs could push US gasoline prices up with 30 cents to 70 cents per gallon.

Problems in Margaritaville

Tariffs would raise the price of those raising a glass of tequila or Canadian whiskey.

In 2023, the US imported $ 4.6 billion dollars of Tequila and $ 108 million value of Mexico, according to the United States Distilled Spirits Council, a trading group. US imported Canadian spirits of $ 537 million, including $ 202.5 million worth of whiskey.

Canada and Mexico were also the second and third largest importers of US spirits in 2023 behind the European Union, the Council said.

The council said the United States is already facing a potentially devastating 50% duty on American whiskey by the European Union, which will begin in March. Introducing customs on Mexico and Canada could pile even more retaliatory action in the industry.

Chris Swongs, Council President and CEO, said he appreciates the goal of protecting American jobs. But Tequila and Canadian whiskey – like Kentucky Bourbon – are referred to as characteristic products that can only be made in their country of origin.

“At the end of the day, duties on spirits from our neighbors to the north and south will damage US consumers and lead to job losses throughout the US hospitality, just as these companies continue their long recovery from the pandemic,” Swonger said.

Expensive avocado, right in time for the Super Bowl

For American consumers still annoyed by high grocery prices, a trade war with Canada and Mexico could be painful. By 2023, the United States bought more than $ 45 billion in agricultural products from Mexico – including 63% of imported vegetables and 47% of fruits and nuts. Gårdsimport from Canada came to $ 40 billion. A 25% duty could push prices up.

“Grocery stores work on really small margins,” Lincicome said. “They can’t eat the tariffs … especially when you talk about things like avocado that basically everyone – 90% – comes from Mexico. You’re talking about Guacamole tariffs just before the Super Bowl. ” ”

American farmers are also nervous that Canada and Mexico will be reciprocated by beating tariffs on US products such as soybeans and corn. That’s what happened in the first Trump administration. China and other goals of Trump -Tariffs hit back by targeting the president’s supporters in rural America. Exports of soybeans and other agricultural products fell, so Trump used billions of US taxpayer money to repay farmers for lost sales.

“President Trump was as good as his word,” said Mark Mchargue, a central city, Nebraska, farmer who grows corn, soybeans, popcorn and raises pigs. “It took the sting out of it. It’s for sure. ” But he prefers to see the government push to open foreign markets to US agricultural exports. “We would rather get our money from the market,” said Mchargue, president of the Nebraska Farm Bureau. “It doesn’t feel good to get a government check. ” ”

____

Associated Press writer Josh Boak in Washington contributed this story.