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Impact Donald Trump's tariffs on Canada and Mexico will have on groceries and gas prices

Home> News> Politics

Published 12:08 2 Feb 2025 GMT

Impact Donald Trump's tariffs on Canada and Mexico will have on groceries and gas prices

Canada and Mexico have hit back after the tariffs were introduced

Callum Jones

Callum Jones

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Here's the impact Donald Trump's tariffs on Canada and Mexico will have on groceries and gas prices.

President Trump has certainly wasted no time in getting his polices across, as he broke records for the number of executive orders signed on his first day as president.

The 47th US president has made changes to passports and immigration just to name a few, while his decision to rename the Gulf of Mexico to the Gulf of America has certainly proved controversial.

The Trump administration has also imposed higher tariff imports on countries like China, Canada and Mexico.

What is Trump's new executive order?

Trump's executive order means import tariffs are taxed at 25 percent for Mexico and Canada, while there's ten percent tariffs on goods from China. A 10 percent tariff will also apply to energy imported from Canada.

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Donald Trump has signed a number of executive orders (Chip Somodevilla/Getty Images)
Donald Trump has signed a number of executive orders (Chip Somodevilla/Getty Images)

President Trump had been threatening the tariffs to ensure greater cooperation from the countries on stopping illegal immigration and the smuggling of chemicals used for fentanyl, but he has also pledged to use tariffs to boost domestic manufacturing.

Speaking to press on Friday (January 31), White House press secretary Karoline Leavitt told reporters: "Starting tomorrow, those tariffs will be in place. These are promises made and promises kept by the president."

How Trump's tariffs will affect your groceries and gas prices

The tariffs are set to have an impact on every American household, with families set to notice a hike in their weekly food shop.

Editor of The Supermarket Guru Phil Lempert told ABC: "About 63% of all our vegetables come from Mexico. When we look at fruit and nuts, about 50% come from there. If we take a look at our meat, that comes from Canada.

"This is not something that's going to have a good effect for consumers any time soon."

The likes of avocados, berries, cooking oil, meat, meat products, beer and even tequila are set to see increases, according to the expert.

Avocados are set to see a price increase (ULISES RUIZ/AFP via Getty Images)
Avocados are set to see a price increase (ULISES RUIZ/AFP via Getty Images)

On top of that, you've got gas price hikes, with Lempert adding: "Gas prices are going to go up. That's what we get from Canada.

"Also, if you take a look, a lot of our US cars are assembled and parts come from Mexico. So, we're going to see the price of cars go up."

Canada and Mexico's response to the tariffs

Both the Canadian and Mexican president announced counter-tariffs on Saturday evening as a direct response to Trump's executive order.

Canada is imposing 25 percent tariffs on CA $155 billion of US goods, while Mexican President Claudia Sheinbaum ordered her economic minister to implement measures to protect Mexico's best interests.

Featured Image Credit: Andrew Harnik/Getty

Topics: Canada, Mexico, US News, Donald Trump

Callum Jones
Callum Jones

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