Latest news with #USMCA-covered
Miami Herald
03-08-2025
- Business
- Miami Herald
Tariffs cause August grocery price surge: Five foods hit hardest
Many Americans have been struggling with the price of groceries since the pandemic. In fact, the U.S. Economic Research Service reported a 23.6% increase in food prices from 2020 to 2024. This is higher than overall inflation, which was at 21.2% during this period (and which was already near a record high). Surging prices on staples like eggs hit especially hard because, while it is possible to try to trim your grocery budget, there's only so much you can do to cut back on essentials. Don't miss the move: Subscribe to TheStreet's free daily newsletter Unfortunately, things are not likely to get better any time soon. In fact, things are very likely going to get worse. That's because tariffs are scheduled to go into effect on almost all U.S. trading partners. These tariffs were originally slated for August 1, but have now been pushed back to August 7. Related: Warren Buffett sends White House blunt message on the economy Tariffs are taxes on imported goods, which are inevitably passed on to consumers. If there are higher import duties due on the food you eat, you are going to pay more for it. In fact, you are going to pay significantly more for many kinds of foods because it's not that easy to just switch to sourcing certain items in the U.S. So, how will tariffs affect your grocery budget, and which items will see the biggest price surges? Let's take a look. Image source: Lysenko Andrii/Shutterstock The Tax Foundation took a close look at how the new tariffs are going to impact food prices, and it is not good news. President Trump's tariffs are expected to impact around 75% of the U.S. food imports. You don't need to be a math expert to understand that is the majority of the food that we eat. USMCA-covered goods are not subject to the tariffs, so the good news is that around 63% of agricultural imports from Mexico and Canada can continue to enter the country without added fees being imposed. Related: White House accidentally shares dark plan for Social Security However, food imports not covered by USMCA will face new tariffs of 25%, with scheduled increases to go as high as 35% or 30% for Canada and Mexico. Since the administration has already put tariffs in place totaling between 10% and 30%, some countries' imports will now face tariffs exceeding 30% if the reciprocal tariffs end up going into effect on August 7. Consumers will largely have to cover a substantial added cost, given that the grocery business' profit margin is pretty thin, making it difficult for others up the supply chain to eat the cost. The Tax Foundation explained that not all foods are going to be equally impacted by the new tariffs. The top five foods that are expected to be hit hardest, in order, include: Liquor and spiritsBaked goodsCoffeeFishBeer Unfortunately, in many cases, these items can't really be swapped out in a one-for-one exchange with products made in the U.S. More on personal finance: Dave Ramsey offers urgent thoughts about MedicareJean Chatzky shares major statement on Social SecurityTony Robbins has blunt words on IRAs,401(k)s If you love your Russian Vodka or your Brazilian coffee, for example, you may not want to swap out these specialized products for U.S. versions that you find to be inferior. Unlike some products, food and drink items aren't just interchangeable. Unless a further change is made to tariff policy, which isn't an impossibility given the many shifts that have occurred, consumers had better start getting ready for this unpleasant reality. August 7 is going to be here before you know it, and your grocery bills may just get a lot bigger when the fateful date arrives. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Time of India
11-07-2025
- Business
- Time of India
Trump's 35% tariff on Canada: Here's what will get more expensive for Americans — and what won't
Donald Trump intends to impose a 35% tariff on Canadian goods. The move raises concerns, but some exceptions exist. Products under the US-Mexico-Canada Agreement will likely remain exempt. Energy products like crude oil and potash may also be excluded. The tariff modifications depend on the relationship with Canada. The new tariff is planned to be implemented on August 1. Tired of too many ads? Remove Ads Will all Canadian products be affected by this new tariff? Are USMCA-covered goods exempt from the tariff? Tired of too many ads? Remove Ads Will energy products like crude oil be taxed higher? What did Donald Trump say in his message to Canada? FAQs US president Donald Trump revealed his plans of imposing a 35% tariff on Canadian goods on late Thursday, as per a report. While the move triggered concerns across industries and among consumers already dealing with high prices, the news also came with some important exceptions that may soften the blow, according to Yahoo everything from Canada will be hit with the same tariff rate, and in fact, many of the most essential imports Americans rely on may be left untouched, as per the new tariff, if implemented on August 1 as planned, would raise duties on some Canadian goods from 25% to 35%, as reported by Yahoo Finance. But according to guidance shared Friday morning by the White House, not all imports will see this increase, as per the READ: Delta Airlines' shocking AI upgrade: It could soon set ticket prices based on what you can afford Products that are covered by the US-Mexico-Canada Agreement (USMCA) are expected to remain exempt from Trump's new tariff rate, according to Yahoo Finance. The agreement, signed in 2020, already provides tariff-free treatment for many goods that make up around 40% of imports from Canada, as per the report. Even energy products like crude oil and potash, a potassium-rich fertilizer used heavily by American farmers, are also likely to be excluded, these currently face a 10% duty and are considered strategically important, reported Yahoo is important for the US because Americans not only consume Canadian oil, but American refiners also often mix crude oil from Canada with American crude oil, which has led to fears that a cutoff would create a ripple effect on US production, as reported by Yahoo Finance. The condition is the same with fertilizers as well, because many agricultural states are highly dependent on the potassium-based potash that comes in from Canada to grow their crops, according to the Yahoo Finance READ: AeroVironment and Kratos share prices surge over 10% after Pentagon's surprise drone buying spree However, Trump's latest letter, which was sent to Canada, ended with a line that has ended all letters this week: "These Tariffs may be modified, upward or downward, depending on our relationship with your Country," as quoted in the he's planning to raise tariffs on some Canadian imports from 25% to 35%, starting August 1, but not everything is included, as per the Yahoo Finance necessarily. Many essential goods like oil and fertilizers may be left out, so the impact might not be as widespread, as per the Yahoo Finance report.
South China Morning Post
03-04-2025
- Automotive
- South China Morning Post
Mexico's President Sheinbaum welcomes being left off Trump's import tariffs list
President Claudia Sheinbaum of Mexico, the United States' top trading partner, on Thursday welcomed her country's exclusion from the list of nations targeted in US President's Donald Trump's latest round of import tariffs. Advertisement Sheinbaum told reporters Mexico was spared thanks to her government's 'good relationship' with the US administration. Mexico's economy is considered one of the most vulnerable to Trump's tariffs due to its close trade relations with the United States and their joint membership of the US-Mexico-Canada Agreement (USMCA) on free trade. More than 80 per cent of Mexican exports go to the United States , including about three million vehicles a year. The Latin American nation is home to many foreign-owned vehicle assembly plants operated by companies including Ford, General Motors, BMW, Volkswagen and Toyota. Advertisement Trump has slapped a 25 per cent import tariff on foreign-made cars and light trucks, effective from Thursday, though with some exceptions for USMCA-covered vehicles and parts. The move prompted multinational car company Stellantis, which has plants in the Mexican cities of Toluca and Saltillo, to announce on Thursday it was pausing production in Mexico, where it makes Dodge cars and Ram trucks.
Yahoo
03-04-2025
- Automotive
- Yahoo
Mexico president welcomes being left off Trump's new tariffs list
President Claudia Sheinbaum of Mexico, the United States' top trading partner, on Thursday welcomed her country's exclusion from the list of nations targeted in Donald Trump's latest round of import tariffs. Sheinbaum told reporters Mexico was spared thanks to her government's "good relationship" with the US administration. Mexico's economy is considered one of the most vulnerable to Trump's tariffs due to its close trade relations with the United States and their joint membership of the US-Mexico-Canada Agreement (USMCA) on free trade. More than 80 percent of Mexican exports go to the United States, including some three million vehicles a year. The Latin American nation is home to many foreign-owned vehicle assembly plants operated by companies including Ford, General Motors, BMW, Volkswagen and Toyota. Trump has slapped a 25 percent import tariff on foreign-made cars and light trucks, effective from Thursday, though with some exceptions for USMCA-covered vehicles and parts. The move prompted multi-national car company Stellantis, which has plants in the Mexican cities of Toluca and Saltillo, to announce Thursday it was pausing production in Mexico, where it makes Dodge cars and RAM trucks. The company has similarly announced it will shutter its Chrysler factory in the Canadian city of Windsor. - 'Major achievement' - Mexico's Economy Secretary Marcelo Ebrard said Thursday the USMCA remained intact, which he described as a "major achievement." He said Mexico would, in the next 40 days, seek "the best conditions" for bilateral trade in automobiles, steel and aluminum. Trump had previously threatened Mexico and Canada with a general 25 percent tariff on all goods, accusing its neighbors of allowing trafficked drugs and undocumented migrants into the United States. Most have been suspended, but tariffs on Mexican goods not covered by the USMCA have entered into force. About 50 percent of Mexican exports fall under the trade agreement, according to analysts' estimates -- coverage Sheinbaum wants to expand to all. Her government is expected to present a "comprehensive" strategy soon as part of its so-called "Mexico Plan" to boost the economy in the face of Washington's tariff onslaught. yug/mar/mlr/des
