Trump’s tariffs on Mexico and Canada set to drive up food prices and inflation

• Trump imposes tariffs on Mexico and Canada.
• Prices on food and goods will increase.
• Impact on inflation and gasoline.

President Donald Trump has signed 25% tariffs on products imported from Mexico and Canada, and 10% from China.

This measure could cause a significant increase in food prices and daily consumer goods in the United States, just a few days from the Super Bowl.

Tomatoes and avocados, essential elements in the American diet, come mostly from Mexico.

The California fruits and vegetable association indicates that 50% of Mexican tomatoes are used in the US, while a study by the University of Florida points out that 80% of the avocados consumed in the country also comes from Mexico.

Avocados affected by Trump tariffs

The application of #duty by the United States government to Mexican products will impact the #Agroindustria. The affected products would be #avocado, #tequila, #beer, #berrieswhich occupy the first export places to that market. Today is the decisive day. pic.twitter.com/piwo54ju7x

– Agrifood giant (@giganteagroa) February 1, 2025

With these new tariffs, their prices could rise drastically in supermarkets and restaurants.

Alcoholic beverages will also suffer the impact.

Model beer, the best selling in the US, along with brands such as Corona and Pacific, could increase its cost of sale.

As for liquors, Tequila has gained ground in border states and maintains an annual growth of 9 % in the country. With tariffs, tequila could become a luxury for many consumers.

Other products will be affected by tariffs

Tariffs to Mexico endanger avocado prices, tomato and tequila https://t.co/idmbvjazbs

– Electonomista.es (@eleconomistaes) February 2, 2025

It is worth mentioning that Canadian products will also be affected.

Arce syrup, fundamental at American breakfast, could be considerably more expensive, since Canada provides 90 % of the global market.

Also, fruits such as strawberries, raspberries and blueberries, as well as buns and pastry products, will face an increase in costs.

The economic impact is not limited to food. Up to 66 % of the crude imported by the US comes from Canada.

With a 10% tariff, gasoline prices could rise, which has historically generated discontent among US consumers.

The implementation of these tariffs from next Tuesday could generate inflationary tensions and affect the daily economy of Americans.

Remains to see how markets and consumers will respond to this controversial measure, according to EFE.

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