Six things that could get more expensive for Americans after Trump tariffs
Published On Feb 3, 2025, 8:22 AM
US President Donald Trump has initiated a trade war by imposing tariffs on imports from Canada and Mexico, prompting retaliatory measures. As a result, prices for a variety of consumer goods are likely to rise, particularly affecting cars (projected price increase of about $3,000), beer, spirits, and building materials due to tariffs on Canadian lumber. The maple syrup industry, heavily reliant on Canada, may see significant price increases as well. The oil market could be impacted if Canada reduces crude oil exports, leading to higher fuel prices in the US. Additionally, consumers may face higher avocado prices due to increased import costs.
Stock Forecasts
XLY
Negative
The trade war and subsequent tariffs are expected to disrupt supply chains and increase costs across various sectors, notably automotive, housing, and consumer goods. The pricing effects on cars and imports like avocados and maple syrup suggest that companies involved in these sectors may face reduced sales or profit margins due to higher operational costs passed onto consumers.
STZ
Negative
Increased tariffs on imports and the potential for retaliatory actions may impact consumer spending negatively, especially in sectors reliant on imported goods, such as food and beverages. Companies like Constellation Brands, which imports Mexican beer, and others in the beverage industry could be adversely affected.
XLE
Negative
The potential increase in fuel prices as a result of changes in crude oil supply from Canada may negatively impact transportation and logistics companies. A reliance on Canadian crude for refining could lead to higher operational costs for US refineries, affecting profit margins across the energy sector.
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