Why tariffs on Mexico and Canada could drive up grocery costs, in 3 charts
By Annette Choi, CNN
(CNN) — From fresh avocados to dairy products, Americans rely heavily on their neighbors for everyday grocery items.
The White House confirmed Monday that President Donald Trump will impose tariffs on goods from Mexico and Canada, two of America’s largest suppliers of agricultural products, on Tuesday. Trump had previously proposed tariffs on all goods for the two countries at 25%, but it’s unclear if the White House remains committed to that level. If tariffs hit agricultural goods, food prices could spike for the average shopper — a top concern for many American families.
The two countries supply a significant share of several key food categories. For example, Mexico is the largest supplier of fruit and vegetables to the US, while Canada leads in exports of grain, livestock and meats, poultry and more.
Here’s what the US depends on most from its closest neighbors and trading partners.
While the White House confirmed plans to impose new tariffs on Mexico and Canada, it remains unclear whether all products would be affected. The president has previously suggested that the tariffs might target specific industries, such as pharmaceuticals or steel.
Agricultural products from Mexico and Canada, in particular, could become more expensive for consumers, as grocery retailers operate on thinner profit margins than most industries. With little room to absorb higher tariff costs, the grocers may have to pass them on to shoppers.
Although the US typically exports more agricultural goods than it imports, the value of imports have increased faster than that of exports in the past decade, according to the Department of Agriculture. Additionally, climate change has increased US reliance on countries like Mexico, where growing conditions are more favorable.
For decades, Mexico and Canada have been major players in feeding America. Together, the countries accounted for nearly $83 billion of the total $196 billion in agricultural goods the US imported between January and November of last year, according to USDA data. The European Union, Brazil and China are also key suppliers of agricultural imports.
Beyond food, Mexico and Canada are also among the US’s largest trade partners overall. The US imported around $467 billion and $337 billion in goods from Mexico and Canada last year, respectively, through November, the most recent month of available data, according to federal trade data from the Commerce Department.
They rank in the top three countries for total goods the US imports. Some of the top goods the US relies on from them include vehicles and vehicle parts, oil and electronics.
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