Trump signs executive orders imposing new tariffs on Canada, Mexico, China

A new study shows President Donald Trump’s newly enacted tariffs could cost the average American family nearly $1,000 annually. Trump signed a trio of executive order imposing the new tariffs on Saturday, Feb. 1. 

How much will this cost Americans?

The new study published by the nonpartisan nonprofit Tax Foundation found that the tariffs would cost the average U.S. household $830 in 2025. The foundation also found that the tariffs could shrink the economic output of the U.S. by 0.4% and increase taxes by $1.2 trillion between 2025 and 2034.

Who is Trump targeting in the tariffs? 

Trump on Friday announced he would sign an executive order imposing new tariffs on Canada, Mexico and China. Canada and Mexico, two of America’s biggest trade partners, would receive a 25% tariff on goods entering the U.S. China would receive a 10%.

On Saturday, Trump changed a part of his plan to exclude Canadian energy imports from the 25% tariff. Energy exports from Canada will be a 10% tariff. The Trump administration said this change was to, “minimize any disruptive effects we might have on gasoline and home heating oil prices.”

Trump said there was little the countries could do to stop the tariffs, according to Reuters. He said the tariffs were due to the countries not doing enough to stop the influx of fentanyl and migrants over the border.

In a post on Truth Social on Saturday, Trump reiterated that message, saying, “We need to protect Americans, and it is my duty as President to ensure the safety of all.”

What will increase in price?

The tariffs will increase the price on several items, according to USA Today. Things like wood, charcoal and aluminum will increase in price due to the tariffs on Canada. Those tariffs will also increase the price of food items like cereal, flour and milk products.

Importantly, Canada is America’s biggest supplier of foreign oil. From January to November 2024, the U.S. imported $90 billion worth of crude oil from Canada, according to Reuters. This is far ahead of the second-biggest foreign oil supplier, Mexico, which only exported $11 billion to the U.S. during the same time. 

Economists predict Trump’s tariffs could raise a gallon of gas up to 70 cents more.

The tariffs on Mexico would increase the cost of goods like fertilizers, paper products and cotton. Food items like tropical fruits, coffee and raw sugar will rise due to these tariffs. 

The Chinese tariffs would likely raise the price of soaps, lubricants, waxes and candles. Foods like fish and crustaceans would likely rise, as well as, dairy products, eggs and oils. 

What has been the response to the tariffs?

Canada recently placed Black Hawk helicopters on the U.S.-Canada border after Trump previously threatened tariffs on the country. They have also said that any tariffs Trump places on Canada, Canada would place on the U.S. 

Canada had previously said its tariffs would involve crude oil. However, recently, Canadian officials have said that may no longer be the case.