With the introduction of new policies from the new president, Donald Trump, there are some products and companies that will be most vulnerable to his tariff proposals. When people shop in stores, there is a possibility that they do not think about the origin of each product.
They might not know where the items they are buying are coming from. Some items like sneakers, T-shirts, beer, and avocados are made or grown in other countries. These countries include China, Mexico, and Canada.
President Donald Trump has talked about putting import taxes, also known as tariffs, on items that are coming into the U.S. from these countries. These tariffs could make those products more expensive. Once these items become more expensive, it might change how people shop and spend their money.
In the past, Trump added tariffs on things like metals and other materials during his first term as president. However, this time, the tariffs he plans to impose are much bigger. It could affect a wider range of items. For example, he is thinking about imposing taxes of up to 60% on goods from China. He is also considering up to 20% on all imported products.
Although the exact plans have not yet been finalized, these tariffs could raise prices on many everyday items. It could change the entire global supply chain and make it harder for people to afford the affected products. This could have a big impact on how families manage their budgets.
How Tariffs Affect the Prices of Products
Tariffs are taxes businesses have to pay on goods they bring into the country from other places. When businesses face these added costs, it increases their cost of production. Since no business wants to lose money, they will increase the prices of their products to make up for the extra cost. This means regular people will end up paying more for everyday things they need or want.
A survey in December 2024 showed that 67% of Americans think businesses will pass these extra costs on to shoppers. Many people are already expecting prices to go up. Big organizations, like the Consumer Technology Association and the National Retail Federation, have said these tariffs could feel like an extra tax for American companies and consumers. Since things are already more expensive due to the current inflation, higher prices from tariffs might make people spend less because they would want to save money.
Many industries could be seriously affected by Trump’s plans for tariffs. They would be vulnerable because they depend heavily on goods and materials that are brought in from other countries. No one will be safe from the effects of tariffs if they are put in place. Let us take a look at the products and companies that are most vulnerable to trump’s tariff proposals from China, Canada, and Mexico.
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China
China is a major supplier of furniture, toys, and shoes to the U.S. In 2023, nearly 30% of furniture, 80% of toys, and 37% of shoes imported into the U.S. came from China.
With the new tariff proposal, furniture faces big challenges. This is because even if it is put together in the U.S., about half of the materials needed, like wood, fabric, and screws, come from other countries, including China. If high tariffs of 60% were added to items from China, companies might have to look for new suppliers in countries like Vietnam or Mexico. However, prices would still go up. For example, a couch that costs $2,000 could end up costing as much as $2,500.
Toys, which are an important part of most American households, would also get much more expensive. A Barbie doll that costs $20 now might go up to about $31.20 with these new taxes. If that happens, many people might start buying cheaper toys from unregulated online stores. The problem is that those toys might not meet safety standards. They could even be harmful to kids.
Shoes would also become more expensive. Many shoe companies are already dealing with rising labor costs in China. They are trying to make their products in countries like Vietnam or Indonesia. For instance, brands like Steve Madden are working to depend less on Chinese factories, but moving production elsewhere takes a lot of time and money.
Mexico
Mexico plays a big role in supplying the U.S. with everyday products like cars, beer, and avocados. Avocados are especially important because 90% of the ones eaten in the U.S. come from Mexico. Since Mexico can grow avocados all year, it helps keep them available at grocery stores no matter the season.
However, if the proposed tariffs are added to Mexican imports, avocado prices could increase even more. This will make them even pricier than they already are at certain times of the year.
Mexican beer is another popular product that could get more expensive. Beers like Modelo and Corona are made in Mexico and brought into the U.S. by Constellation Brands. If a 25% tax is added to Mexican goods, Constellation’s cost of production would increase by about 16%. To make up for these costs, the company would likely raise the price of its beer. This means people would have to pay more for their favorite drinks.
The car industry would also feel the impact of these taxes. U.S. car companies, like Ford, General Motors (GM), and Stellantis, build their vehicles in Mexico. They do it there because it is cheaper to produce them there. Production includes popular items like trucks and electric cars. If the U.S. adds a 25% tax on Mexican imports, it could cost these companies billions of dollars. To cover these extra costs, they might increase the prices of these cars. This might make it more expensive for people to buy vehicles.
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Canada
Canada is one of the U.S.’s biggest trading partners. The country provides important goods like cars, winter coats, and frozen potatoes. If new tariffs are added, the prices of these products could increase for Americans.
For example, many cars made in Canada might become more expensive due to the added costs from tariffs. Popular Canadian brands like Canada Goose, famous for their high-quality winter coats, could also face price hikes. This will occur because most of their products are made in Canada.
Even something as simple as frozen French fries could be affected. McCain Foods, a Canadian company that makes one out of every four fries eaten worldwide, could see their costs rise due to tariffs. This might push suppliers to buy from companies that are based in the U.S. instead. However, it is not guaranteed that these changes will fully prevent price increases.
If Trump’s proposed tariffs are passed, it could make everyday things more expensive for people in the U.S. While some companies are trying to reduce the impact of these price hikes, the tariffs could make it hard to stop prices from going up, especially the products and companies that are most vulnerable to trump’s tariff proposals .