25% Tariffs on Mexico and Canada Imports Will Start Tuesday

Since the start of his second term, President Donlad Trump has been threatening Canada and Mexico with 25% tariffs on imported goods. Many people within the U.S. feared this would start a North American trade war that had already been showing signs of inflation.

Well, according to Trump, talks are over. The president told reporters on Monday, "Tomorrow — tariffs 25% on Canada and 25% on Mexico. And that’ll start. They’re going to have to have a tariff.”

But why and how will this affect you?

Why the 25% Tariffs?

President Donald Trump is demanding a 25% tariff on imports from Mexico and Canada primarily to address issues of illegal immigration and drug trafficking, particularly the flow of fentanyl into the United States.

Trump claims that these tariffs will force the two neighboring countries to intensify their efforts against fentanyl smuggling and better manage the flow of undocumented migrants. The administration asserts that Mexican gangs illegally supply fentanyl and maintain laboratories in Canada, while the chemicals necessary for producing the drug originate in China.

Additionally, Trump argues that these tariffs will enhance U.S. manufacturing, stimulate economic growth, safeguard jobs, and increase tax income. However, economists warn that these tariffs could lead to income reductions, job losses, and increased consumer prices on a wide range of products, including groceries, clothes, electronics, and more.

Despite the U.S. stock market seeing a 2% drop on the S&P 500 index, the Trump administration is confident that these tariffs are the best choice for U.S. manufacturing and for attracting foreign investment.

The high tariffs aren't just hitting Canada and Mexico. In February, Trump had placed a 10% import tariff on China, and stated on Monday that would be doubling to 20% on Tuesday.

“If Trump is imposing tariffs, we are ready,” stated Canadian Foreign Minister, Mélanie Joly. “We are ready with $155 billion worth of tariffs and we’re ready with the first tranche of tariffs, which is $30 billion.”

How Do These Tariffs Affect You?

Every day, you may be eating fruit that was gorwn in Mexico, use a phone that was manufactured in China, or built a home made from lumber from Canada. However, with these new tariffs in place, these goods we use everyday are about to get even more expensive.

Despite Trump claiming that other countries will pay these tariffs, it's actually you, the consumer, who will be.

According to the nonpartisan Tax Foundation, each U.S. household would see an average of over $800 tax increase in 2025.

Taxesd aren't the only thing that will increase, but just with China's tariffs, shoes, toys, and electronics will all have a heftier price tag.

Due to the tariffs on Mexico and Canada, here are just some of the items that will increase in price:

• cars and gas prices

• fresh produce

• construction materials, such as lumber and other building materials

Even if we don't see the price go up on items, the American economy will be feeling it.

Erica York, vice president of federal tax policy at the Tax Foundation says, "It means incomes and returns to shareholders in the U.S. economy are lower instead, because if businesses have to eat those higher costs, it means they have less to pay their workers. It means they have less to hire and expand employment, or less to invest. So no matter what channel the price impact takes, it's Americans who are hurt by the tariffs."