President Donald Trump’s administration has followed through on its promise to impose tariffs on goods from Mexico and Canada, with the tariffs taking effect just after midnight. Trump emphasized the need for companies to establish their manufacturing plants in the United States to avoid tariffs. These tariffs are expected to impact everyday Americans, leading to increased prices on items like gas, alcohol, and meat.

Studies from the Federal Reserve Bank of Atlanta and the Peterson Institute for International Economics indicate that these tariffs could raise consumer prices by 0.81% to 1.63% and cost the average U.S. household $1,200 annually. The Tax Policy Center suggests that after-tax income could decrease significantly, particularly affecting lower-income households.

Items from Canada such as wood, aluminum, and dairy products, and imports from Mexico including cereals, fruits, and meats could be significantly impacted by the tariffs. The cost of living crisis is further exacerbated by these tariffs, with Trump’s actions expected to drive prices even higher. Mexico and Canada are major suppliers of meat, produce, and alcohol to the U.S.

The tariffs could also lead to pricier gas and cars, affecting the transportation industry and potentially increasing prices for both new and used vehicles. The overall impact of these tariffs is complex and could result in unintended consequences for American consumers and businesses, as highlighted by experts.