From CNBC: 2025-03-04 15:27:22

Tariffs on Canada and Mexico took effect, raising prices for consumers. President Trump imposed a 25% tariff on both countries, affecting products like fruits, vegetables, and oil. Economists warn of ripple effects on supply chains, predicting a $930 cost per household in 2026.

The auto industry is expected to be hardest hit by the tariffs on Canada and Mexico. Major automakers may face higher production costs, potentially adding $6,000 to the cost of a car. This disruption could lead to increased car insurance premiums, impacting consumers.

Target CEO warns of price hikes on fruits and vegetables due to Mexico tariffs. Fresh produce prices could rise almost 3%. Construction materials from Canada are also affected. Businesses may absorb some costs, impacting profits and hindering investment in new developments.

Foreign retaliation on U.S. trade, including from Canada and China, is expected. Canadian Prime Minister announced tariffs on U.S. imports, prompting Trump to vow more tariffs. Ontario retaliates with a tax on electricity exports to the U.S. China and Mexico also announce retaliatory measures.

Read more: Canada, Mexico tariffs create ‘ripple effects’ on consumer prices