Just weeks after stepping back into the White House, President Donald Trump has made good on yet another campaign promise—tariffs, tariffs, and more tariffs. This time, it's a whopping 25% duty on all imports from Canada and Mexico, his two biggest trading partners.

Energy from Canada? That gets a "discounted" 10% tariff. Meanwhile, China, already under a barrage of Trump-era duties, gets hit with an additional 10% tax. The reasoning? According to the administration, this is about national security, the fentanyl crisis, and—you guessed it—illegal immigration.

Love him or hate him, Trump isn't just throwing out empty threats. He's wielding the International Emergency Economic Powers Act (IEEPA) like a hammer, smashing tariffs into place with barely a blink. But what does this mean for American consumers? Prices are about to shift—and not in a good way.

A Game of Economics—or a Political Gamble?

Alright, let’s not sugarcoat this. Tariffs aren’t some magic fix for the economy—they’re a tax. And guess who ends up paying it? You. When Trump slaps a 25% tariff on Canada and Mexico, it’s not the businesses in Toronto or Monterrey absorbing that cost—it’s American businesses, American consumers, and your wallet.

This is exactly why Justin Trudeau warns Trump's tariffs will hurt American consumers—not because he’s trying to score political points, but because that’s how tariffs work. Look at the numbers:

• Canada and Mexico sent $1.01 trillion worth of goods to the U.S. in 2023.

• U.S. trade deficit with Canada? Over $40 billion.

• Deficit with Mexico? An eye-watering $162 billion.

The math doesn’t lie. If American businesses suddenly have to pay 25% more for products they’ve been importing for decades, they aren’t just going to take the hit and call it a day. No company willingly eats into its profits like that. Instead, they jack up prices, and you—the consumer—end up covering the difference.

So next time you’re in the grocery store, at the gas pump, or trying to buy a new car, don’t be surprised when things cost a little (or a lot) more. That’s how tariffs shake out in reality.

Will Trump’s Tariffs on Mexico and Canada Really Work?

Short answer: Depends on who you ask.

Trump loves tariffs. His all-in-one economic tool. His go-to strategy when things aren’t going his way.

• Want to reduce the trade deficit? Tariffs.

• Want to boost "Buy American" sentiment? Tariffs.

• Want to negotiate immigration policies? Tariffs.

• Want to take a hard stance on fentanyl? You guessed it—tariffs.

But here’s the thing—most economists think these tariffs will backfire. Why? Because history tells us so.

When Trump imposed tariffs on China during his first term, he promised it would hurt China’s economy and protect American businesses. What actually happened?

• American businesses paid more for imported goods.

• Consumers saw higher prices.

• Farmers struggled as China retaliated with tariffs on U.S. agriculture.

• Manufacturers had to cut costs or pass expenses onto customers.

This isn’t speculation—it’s documented reality. Multiple studies showed that the burden of Trump’s previous tariffs fell mostly on Americans, not China. Now, with tariffs on Canada and Mexico, it’s déjà vu.

And let’s not forget: Canada and Mexico are not China. They’re not America’s geopolitical adversaries—they’re America’s biggest trading partners. They buy U.S. goods, sell critical resources, and keep supply chains running smoothly.

What Happens to Everyday Prices?

Let’s break it down to the stuff that actually affects your life.

1. Food: Say Goodbye to Cheap Avocados and Tacos

• Mexico supplies 80% of U.S. produce imports. Avocados, tomatoes, peppers, and berries? Prices will skyrocket—because tariffs make them more expensive to bring over.

• Canada? It’s the biggest supplier of grain, livestock, and dairy. If you like cheap milk, cheese, or steak, you’re in for a rude awakening.

• Supermarkets run on razor-thin margins—they can’t afford to absorb tariff costs. That means you pay more at checkout.

2. Fuel: Gas Prices Are About to Jump

• Canada is America’s biggest oil supplier. Even with just a 10% tariff on energy, the cost of gasoline and heating oil will rise.

• If the tariffs stay in place through summer, brace yourself for higher gas prices during peak travel season.

3. Cars: Buckle Up for Higher Prices

• The U.S. imports $87 billion worth of vehicles and $64 billion in auto parts from Mexico.

• Automakers rely on cheap Mexican labor to keep prices low. A 25% tariff kills those savings, and guess who pays the difference? You.

• If you’ve been eyeing a Ford, GM, or Tesla, it might be time to buy before the price hikes kick in.

4. Steel: Construction and Home Prices Take a Hit

• The last time Trump slapped tariffs on steel, prices jumped almost overnight.

• Canada and Mexico account for a third of U.S. steel imports—this means houses, appliances, and even beer cans will get more expensive.

Does Canada Have Tariffs on U.S. Goods?

Canada and Mexico are not just going to sit there and take this beating. That’s not how trade wars work. You punch? They punch back. Hard. And the biggest casualty in this brawl? Your wallet.

Canada and Mexico are already planning their counterattack. You think they’re just going to nod politely while Trump taxes their exports? No chance. They’re gearing up for retaliatory tariffs on U.S. goods, just like they did last time.

• Remember 2018? Trump went after steel and aluminum, and Canada slapped tariffs on U.S. whiskey, dairy, and even ketchup. That’s right—ketchup.

• Mexico? They didn’t hold back either. They hit American pork, apples, and bourbon with duties, making sure U.S. farmers felt the heat.

And now? We’re about to do this all over again. Only this time, it’s going to get uglier.

The nuclear option? Energy exports.

• Canada could choke the flow of oil and electricity to the U.S., making gas prices skyrocket. Imagine filling up your tank for $6 a gallon.

• Mexico could mess with the auto industry, throwing tariffs on car parts that U.S. manufacturers rely on. Bye-bye affordable vehicles.

A trade war isn’t just some abstract thing that politicians talk about on TV. It’s real. It’s messy. And it’s going to hit every single one of us where it hurts—our bank accounts.

Why This Feels Personal: The Politics of the Tariff War

Do you ever get the feeling that politicians are just playing games with your money? Because that’s exactly what’s happening.

Canada is in political chaos. Justin Trudeau is stepping down, and by March, a new prime minister will take the reins. If it’s a Conservative government, they’ll probably play hardball with Trump. But right now? Canada’s stuck in political limbo, and Trump knows that. That’s why he’s making his move—before Canada can even figure out who’s in charge.

And Trump’s not just making economic threats. Oh no, he’s also out here joking about Canada becoming the 51st U.S. state. Yeah. He said that. If you think Canadians are just going to shrug that off, think again.

Meanwhile, Mexico is playing chess, not checkers.

• President Claudia Sheinbaum has zero intention of bowing to Trump’s demands.

• She’s already hinted that Mexico might strengthen ties with China to counterbalance U.S. pressure.

• And Trump? He HATES that idea. He’s already threatening to rip up the USMCA trade deal, even though he spent his first term bragging about how it was his greatest trade achievement.

This isn’t just about tariffs. This is about power, leverage, and political posturing. Trump wants to show he’s the tough guy in charge. Canada and Mexico don’t want to be bullied.

And caught in the middle? You.

What’s Next? Will the Tariffs Stick?

Honestly? Nobody knows.

• Will the courts block them? Maybe. But Trump’s using national security laws, which gives him broad power.

• Will there be exemptions? Possibly—especially if big businesses lobby hard enough.

• Could the tariffs be reversed? Not likely unless Trump faces backlash from his own party.

But one thing is certain: These tariffs WILL raise prices. And whether you're a small business owner, a shopper, or just someone who likes affordable guacamole, you’re about to feel it.

Who Actually Wins Here?

• Trump wins politically—at least with his base. He promised tariffs, and now he’s delivering.

• Big U.S. manufacturers might benefit—if they can charge more for domestic goods.

• Canada and Mexico? They suffer—but so do we.

• Consumers? We’re the biggest losers, stuck with higher prices and fewer choices.

Trump’s betting that this move will force Mexico and Canada to the negotiating table. But at what cost?

Because in the end, tariffs are just another word for a tax on you.