Get ready to pay more for avocados, maple syrup and – well – almost everything.
The U.S. officially imposed new 25% tariffs on Canada and Mexico on March 4, 2025, following through on a long-delayed pledge from President Donald Trump. American consumers and businesses are now bracing for higher costs and potential supply disruptions.
Although tariffs, or taxes on imports, are a pillar of Trump’s economic policy, the move still surprised many observers, since Mexico and Canada are among the U.S.’s traditional allies and top trading partners. The administration further rattled global supply chains by doubling existing tariffs on Chinese goods to 20%.
As an economist who studies global trade, I wanted to know how the 25% import duties on Canada and Mexico would affect different parts of the country. So I conducted a state-by-state impact analysis.
What I found is alarming: The U.S. economy could face an annual loss of US$109.23 billion. This shortfall would mean rising costs of every day goods for American families and would disproportionately affect certain states. My analysis focused exclusively on the effects of U.S. tariffs, so it didn’t take retaliation from Canada or Mexico into account. If it did, the losses would be even greater.
Read more on The Conversation.
