Impending Tariffs on Mexico and Canada Could Spike Gas Prices and Grocery Bills for U.S. Consumers
American consumers could soon feel the sting of new tariffs on goods from Mexico and Canada, with gasoline prices potentially soaring by as much as 70 cents per gallon and grocery bills climbing significantly.
The Trump administration reaffirmed this week that it plans to impose a 25% tariff on all imports from Mexico and Canada starting February 1. As two of the United States’ largest trading partners, these tariffs could have widespread economic repercussions, experts warn.
Higher import taxes typically lead to increased prices for U.S. shoppers, as businesses pass along at least part of the cost. If enacted, these tariffs could drive up the prices of everyday essentials, from tomatoes and tequila to auto parts and appliances.
“The scary thing is the list of products is very, very long,” said Jason Miller, a professor of supply-chain management at Michigan State University.
However, the full impact remains uncertain. Some businesses within the supply chain may absorb part of the costs, and there’s a chance the tariffs won’t take effect at all. Trump has previously used tariff threats as a bargaining tool in international negotiations, leaving open the possibility of last-minute changes.
For now, consumers and businesses alike brace for what could be a costly shake-up in trade relations.
White House Defends Tariffs, Citing Economic Growth Under Trump—But Experts Warn of Price Hikes
In response to concerns over impending tariffs, the White House defended former President Donald Trump’s economic policies, touting his past approach to trade, taxes, and deregulation.
“In his first administration, President Trump instituted an America First economic agenda of tariffs, tax cuts, deregulation, and an unleashing of American energy that resulted in historic job, wage, and investment growth with no inflation,” White House spokesperson Kush Desai told Family Us News. “In his second administration, President Trump will again use tariffs to level the playing field and usher in a new era of growth and prosperity for American industry and workers.”
However, economic experts warn that the proposed 25% tariffs on imports from Mexico and Canada—set to take effect February 1—could drive up prices for essential goods, including gasoline, food, and auto parts.
How Tariffs Could Impact Gas Prices
Mexico and Canada supply 70% of the crude oil imported by the U.S., making them critical to the nation’s gasoline supply, according to the U.S. Energy Information Administration.
Most of these imports come from Canada, where crude oil is sent to U.S. refineries designed specifically to process it into gasoline. If tariffs are imposed, consumers could see significant price hikes at the pump.
“These refineries are built to handle Canadian crude,” said Timothy Fitzgerald, a petroleum industry expert and professor of business economics at the University of Tennessee. “Disrupting this supply chain could lead to higher costs that get passed down to drivers.”
As the debate over tariffs intensifies, Americans may soon face the economic reality of paying more at the gas station and grocery store. Whether these tariffs move forward as planned—or become another bargaining chip in trade negotiations—remains to be seen.
How Tariffs Could Drive Up Gas, Grocery, and Alcohol Prices for Americans
With the Biden administration standing firm on 25% tariffs on imports from Mexico and Canada, consumers may soon face steep price hikes at the pump and in grocery aisles. Experts warn that gasoline prices could spike by as much as $1 per gallon, while the cost of fresh produce, beer, and tequila could soar due to America’s heavy reliance on Mexican and Canadian imports.
Gas Prices Could Climb by $1 Per Gallon
For drivers in the upper Midwest and along parts of the East and West Coasts, gasoline prices could rise between 40 and 70 cents per gallon due to the tariffs, according to Timothy Fitzgerald, a petroleum industry expert and business economics professor at the University of Tennessee.
“You could definitely be looking at 50-cent-a-gallon increases in a lot of parts of the country,” Fitzgerald warned, noting that the impact would be most severe in areas dependent on imported crude.
Adding to the squeeze, seasonal price hikes—caused by increased springtime demand—could push gas prices up another 30 cents per gallon. That means, if tariffs remain in place, drivers could see a total increase of up to $1 per gallon as early as this spring.
Fresh Produce Prices Could Skyrocket
The U.S. relies heavily on Mexico for fresh fruits and vegetables, importing $38.5 billion in agricultural products in 2023 alone, according to the U.S. Department of Agriculture.
Some of the most impacted items include:
✅ Avocados: 90% of avocados consumed in the U.S. come from Mexico
✅ Tomatoes, Cucumbers, & Peppers: Large portions of these staples originate in Mexico
✅ Limes & Mangos: Essential for cocktails and cuisine, these imports could see sharp price hikes
Experts say it would be extremely difficult for the U.S. to replace these products with domestic production or alternative suppliers. “You’d certainly expect to see an impact on prices,” said Jason Miller, a supply-chain expert at Michigan State University.
Tequila, Beer, and Alcohol Imports at Risk
Mexico is also a major supplier of alcoholic beverages to the U.S., accounting for about $26 billion worth of beer, tequila, and other drinks in 2022, USDA data shows. If tariffs drive up costs, Americans could see their favorite drinks become significantly more expensive.
As the proposed tariffs loom, businesses and consumers alike are bracing for potential financial strain. While the White House insists the move is part of a broader economic strategy, the full extent of its impact remains to be seen.
Tariffs Could Also Drive Up the Cost of Cars, Auto Parts, and Beer
As experts warn of rising gas and grocery prices, another major sector is bracing for impact: the auto industry. Tariffs on imports from Mexico and Canada could significantly increase the price of cars and auto parts—costs that would likely be passed on to American consumers.
Auto Industry Faces Major Disruptions
Mexico and Canada are the top two trading partners for U.S. motor vehicles and auto parts, according to a Cato Institute analysis of U.S. International Trade Commission data.
📌 Nearly 47% of all vehicles imported by the U.S. in 2023—worth about $120 billion—came from Mexico and Canada.
📌 The two countries also accounted for nearly half of all U.S. auto parts imports last year.
“The operations of auto companies on both sides of the border will be hugely affected by these tariffs,” said Robert Lawrence, a trade and investment professor at Harvard University’s Kennedy School of Government.
The auto industry operates on highly integrated supply chains, with parts frequently crossing borders multiple times before a car is fully assembled. Tariffs could force manufacturers to either raise prices, absorb losses, or shift production—any of which could spell higher costs for consumers.
Don’t Forget the Beer
Beyond cars, food, and fuel, tariffs would also hit one of America’s favorite imports: Mexican beer.
“Don’t forget all that beer we import from Mexico,” said Jason Miller, a supply-chain expert at Michigan State University.
With billions of dollars’ worth of beer, tequila, and other alcoholic beverages imported from Mexico each year, consumers may soon find their favorite drinks coming with a much higher price tag.
As the proposed tariffs loom, industries from automakers to grocery chains to breweries are preparing for significant price disruptions—leaving many Americans wondering just how expensive daily life could become.
