What are tariffs? Here's why they could make beer, books and coffee more expensive
After a month-long delay, the U.S. has enacted tariffs on goods from the country's top trading partners.
President Donald Trump announced Monday the 25% tariffs on imports from Canada and Mexico would go into effect beginning Tuesday. Trump also doubled tariffs on some Chinese goods from 10% to 20%.
The trade barriers sent stocks tumbling. Economists generally agree that tariffs, a tax on imports, tend to lead to higher prices for consumers. China and Canada have already announced retaliatory tariffs against the U.S., and Mexican President Claudia Sheinbaum said she plans to announce Mexico's retaliatory tariffs and other measures against the U.S. on Sunday.
Together, China, Canada and Mexico make up the U.S.'s biggest trading partners, and Trump has acknowledged the tariffs could cause American consumers "some pain."
Here is what to know about tariffs and how they could impact everyday purchases:
What is a tariff?
A tariff is a form of tax imposed on imports from another country.
Economists generally agree that trade barriers raise consumer prices and negatively impact economic output and income, according to the Tax Foundation, a nonpartisan tax policy nonprofit.
Tariffs create more demand for domestic manufacturers, but those companies are also part of the global supply chain and therefore also impacted by tariffs, experts have previously explained to Paste BN.
Trump's motivation for implementing tariffs is to get help from China, Canada and Mexico to curb the flow of migrants and illegal drugs into the U.S. The president has insisted that the countries have not done enough to help address what he sees as core issues for his administration.
When the tariffs were first announced in February, Mexico and Canada agreed to do more for the border in order to delay the tariffs by a month. Despite the one-month delay, Trump said they would go into effect beginning Tuesday.
"No room left for Mexico or Canada," Trump said in announcing the end of the delay Monday. “The tariffs – they are all set. They’re going into effect tomorrow.”
What common items does the US import from Canada?
The following common imports from Canada to the U.S., according to the Bureau of Industry and Security and Trading Economics, could be affected by Trump's tariffs:
- Wood
- Charcoal
- Aluminum
- Iron and steel appliances
- Cereal, flour, starch and milk products
- Rubbers
- Alcoholic beverages
- Carpets and other textile floor coverings
- Wool, animal hair, horsehair yarn and fabric
- Umbrellas, walking-sticks, seat-sticks, whips
- Cotton
- Photographic or cinematographic goods
- Cork products
- Printed books
While most of the goods are taxed at 25%, Canadian energy imports, like natural gas and oil, will face a 10% tariff.
What goods does the US get from Mexico?
Items the U.S. imports from Mexico, according to Trading Economics and the OEC, that could be affected by Trump's tariff plan include:
- Cereals
- Paper products
- Processed fruits and nuts
- Tropical fruits
- Tomatoes, onions, lettuce and cabbage
- Pickled foods
- Fruit juice
- Fertilizers
- Dairy products, eggs and honey
- Cotton
- Beer and hard liquor
- Coffee, tea, mate and spices
- Meat, fish and seafood
- Sauces and seasonings
- Baked goods
- Avocados
- Raw sugar
What items from China could be impacted by Trump's tariffs?
Common imports to the U.S. from China, according to Trading Economics and the U.S. Department of Agriculture, that could be affected by Trump's tariff plan include:
- Fish and crustaceans
- Vegetable fats and oils
- Vegetables (especially corn), fruit and nuts
- Soaps, lubricants, waxes, candles, modeling pastes
- Cereal, flour, starch, wheat and milk products
- Coffee, tea and spices
- Sugar
- Cocoa
- Dairy products, eggs, honey and edible products
- Vinegar
- Apple juice
- Garlic
Contributing: Kim Hjelmgaard, Bart Jansen, Bailey Schulz and Rachel Barber, Paste BN
Kinsey Crowley is a trending news reporter at Paste BN. Reach her at kcrowley@gannett.com, and follow her on X and TikTok @kinseycrowley.