If you’re considering purchasing a new cell phone, it would be wise to do so today, as prices are set to increase tomorrow.
It’s not just mobile phones that are expected to become more expensive. According to the Daily Mail, there are six other items you might want to buy before President Donald Trump’s new tariffs come into effect.
On Saturday, February 1st, President Trump approved an order imposing significant tariffs aimed at holding China, Mexico, and Canada accountable for their commitments to stop the influx of harmful drugs into the United States.
This order includes a 25 percent tariff on goods from Canada and Mexico and a 10 percent tariff on items from China. To reinforce this measure, Trump also declared a national emergency under the International Emergency Economic Powers Act.
Without further ado, let’s delve into the details.
This isn’t the first instance of tariffs being placed on goods from China intended for the U.S. market, but the notable change is that smartphones made in China will now cost 10 percent more when sold in the U.S.
According to a 2021 United Nations report, China produced 30.5 percent of all mobile phones globally, with companies like Apple choosing to manufacture many of its products in China rather than domestically.
If you’re a fan of tequila or whisky, it might be time to visit your local liquor store, as these are some of the products the U.S. heavily imports from Mexico and Canada.
The Distilled Spirits Council of the United States reports that, in 2023, Canada was the second-largest source of spirits imported into the U.S., with Mexico being the third-largest, surpassed only by the European Union.
In the same year, Mexico exported $4.6 billion worth of tequila to the U.S., and $108 million worth of mezcal also crossed the border.
Meanwhile, Canada shipped $202.5 million worth of whisky to the U.S., along with an additional $537 million in spirits from north of the border in 2023.
American whiskey exports to the EU are expected to face a significant 50 percent tariff, and Canadian Prime Minister Justin Trudeau has announced that Canada will impose a 25 percent tariff on all U.S. goods, with Mexico likely to follow their lead.
Over 20 percent of cars and light trucks sold in the U.S. are reportedly manufactured just across the border. In 2023, the U.S. imported $106 billion worth of vehicles from Mexico and Canada—$69 billion from the south and $37 billion from the north.
Additionally, $98 billion worth of car parts were imported from these two countries, with $78 billion coming from Mexico and $20 billion from Canada.
If you’re familiar with Tonka trucks, you might know that they are a favorite among American children, with over a million sold annually in the U.S. Unfortunately, they are all produced in China, so if you thought they were already pricey gifts for your kids, they might soon become even more expensive.
This could be one of the most impactful changes for Americans or perhaps the most anticipated one.
From January to November of last year, Canada sent $90 billion worth of crude oil to the U.S., and Mexico shipped $11 billion worth.
It is unsurprising that Canada is the largest supplier of crude oil to the U.S., with Mexico as the second-largest.
Although Canadian oil will face a 10 percent tariff rather than a 25 percent one, it could still significantly affect consumers.
Tariffs on Canadian oil imports are expected to drive up gasoline prices, with TD Economics estimating an increase of around 30 to 70 cents more per gallon.
The cost of avocados and tomatoes could rise due to Trump’s tariffs.
In 2023, the U.S. purchased over $45 billion in food and agricultural products from Mexico, with nearly two-thirds of imported vegetables coming from its southern neighbor, along with almost half of all imported fruits and nuts.