U.S. President Donald Trump's decision to impose a 25% tariff on Canadian and Mexican goods is set to drive up grocery costs for American consumers. This latest round of tariffs, effective immediately, is expected to impact a broad range of essential food products, including bread, pasta, oatmeal, and cooking oil, all of which rely heavily on Canadian and Mexican grain imports.

However, US has since then postponed tariff implementation for next 30 days, which were due to come to effect on Tuesday, February 4. The two nations have assured to tighten border security and implement extra curbs to stop the flow of illegal drugs and immigrants into US.

The fate of these tariffs hangs on by a loose thread. If the US decides to go ahead with implementing hiked tariffs, here is a list of commodities that can bear the brunt of increased price in the US.

Canada

In 2023, the U.S. imported more than $17 billion worth of Canadian grain, including vital commodities like wheat for bread, durum for pasta, oats for cereals, and canola oil for cooking. Canadian wheat exports to the U.S. alone were valued at over $1 billion, with oats reaching $580 million, barley over $200 million, and canola oil totaling $8.5 billion. With the tariffs now in place, American households are bracing for higher food prices on these staples.

These tariff hikes would not only affect consumers but also hurt U.S. farmers who rely on Canadian potash fertilizers. Potash is a vital resource used to fertilize crops, and without Canadian supplies, U.S. farmers will face even higher production costs.

Amongst the Canadian products that are being subjected to 25% tariff hikes are –

• Dairy: Milk, cream, yogurt, buttermilk, butter, cheese, and whey.
• Meat & Poultry: Beef, pork, poultry, sausages, and other processed meat products.
• Eggs & Honey: Eggs, egg yolks, and natural honey.
• Grains & Legumes: Wheat, rye, barley, oats, rice, meslin, leguminous vegetables, and nuts.
• Fruits & Vegetables: Tomatoes, citrus fruits, melons, apricots, cherries, peaches, nectarines, plums, and preserved vegetables.
• Oils & Fats: Canola, sunflower, palm, groundnut, and mustard oil, as well as margarine.
• Sugars & Sweets: Cane sugar, beet sugar, molasses, chocolate, and malt extract.
• Beverages: Beer, wine, vermouth, other fermented drinks, and undenatured ethyl alcohol.
• Spices & Seasonings: Pepper, vanilla, cinnamon, cloves, nutmeg, saffron, turmeric, and other dried seasonings.
• Lumber.

Mexico

The U.S. imported over $45 billion worth of agricultural goods from Mexico in 2023. Additionally, the U.S. imports a variety of Mexican alcoholic beverages, such as beer and tequila according to the US Department of Agriculture. It imported $69 billion worth of cars and light trucks from Mexico in 2023.

• Amongst the Canadian products that are being subjected to 25% tariff hikes are-
• Agricultural Produce: Fruits, vegetables, avocados, strawberries, tomatoes, raspberries, cucumbers, lettuce, frozen vegetables.
• Automobiles: Cars, light motor vehicles, delivery trucks, motor parts and accessories.
• Machines: Computers, insulated wires, video displays, broadcasting equipment, refrigerators, air conditioners.
• Foodstuffs: Beers, hard liquors, packaged drinks, chocolate, baked goods, rolled tobacco, coffee, confectionary sugars.
• Mineral: Crude petroleum, cement, fly ash, molybdenum ore.
• Metals: Iron and iron products, metal mountings, rolled iron, stovetops, scrap metal, padlocks.
• Medical instruments: Thermostats, orthopaedic appliances, oscilloscopes.