Upcoming tariffs on goods from Mexico and Canada could significantly impact U.S. consumers, with gasoline prices potentially rising by as much as 70 cents per gallon and grocery bills climbing, experts warn.

The Trump administration has reaffirmed plans to impose a 25% tariff on all imports from Canada and Mexico starting February 1. These two nations rank among the top three U.S. trading partners, and such tariffs could lead to higher prices for essential goods, from auto parts to fresh produce.

Potential Price Hikes Across Key Sectors

Gasoline:
Canada and Mexico supply 70% of the crude oil imported into the U.S., a key component in gasoline production. Canadian crude is refined in U.S. facilities before being distributed across the country.

“For drivers in the Midwest and parts of the East and West coasts, gas prices could increase between 40 and 70 cents per gallon,” said Timothy Fitzgerald, a petroleum industry expert at the University of Tennessee.

With seasonal demand for gasoline expected to rise in the coming months, Fitzgerald warns that the total price hike could reach $1 per gallon if the tariffs remain in place through spring.

Grocery Costs:
Mexico remains the U.S.’s top supplier of fresh fruits and vegetables, with agricultural imports totaling $38.5 billion in 2023. Among the most affected products could be tomatoes, avocados, and other staples.

“The list of impacted goods is extensive,” said Jason Miller, a supply chain management professor at Michigan State University. “Many everyday grocery items could see noticeable price jumps.”

White House Stance on Tariffs

When asked for comment, a White House spokesperson defended Trump’s economic approach, emphasizing his commitment to tariffs as a tool for strengthening the U.S. economy.

“In his first administration, President Trump used tariffs, tax cuts, and deregulation to drive historic job growth and investment. He will again use tariffs to level the playing field and create prosperity for American workers,” said spokesperson Kush Desai.

Uncertainty Over Implementation

Experts caution that the full impact of the tariffs is uncertain, as businesses may absorb some of the costs or adjust supply chains. Additionally, Trump has previously used tariffs as leverage in trade negotiations, meaning the policy could still shift.

If enacted as planned, however, Americans could see rising prices at the pump and checkout aisles in the weeks ahead.