As US President Donald Trump announced coming into effect the tariffs he imposed against Mexico, Canada, and China, eventually it will be affecting the Americans too, as these nations also imposed retaliatory measures against the US. 

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Whether in groceries, electronic items, or car dealerships, Americans are going to face a lot of trouble as the ongoing trade war will lead to higher prices of these products in the US. 

Trump on Monday officially confirmed his decision to implement 25% tariffs on imports from Canada and Mexico starting Tuesday, which will create further trade tensions between the three United States' neighbouring countries and cause substantial market instability. 

Also read: Trump imposes Canada, Mexico tariffs as trade war fears mount; markets sink

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Now, the extra dab of guacamole on your burrito is going to cost more in the coming days as the prices of Mexican avocadoes, beer, and tequila are likely to rise. 

Last month, Trump warned that his new tariffs could cause "some pain".

White House trade adviser, Peter Navarro, in an interview with CNBC on Monday, said that the effect of tariffs on consumer goods would be relatively "small", given the Trump administration's simultaneous plans to deregulate industry, reduce the size of the federal government, and expand energy production.

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However, trading data and economic studies have suggested that American consumers are likely to see a hike in prices on a wide range of products, including vegetables, meat, cell phones, and cars. 

“Because of the combination of these three countries, it’s going to be difficult to go down an aisle of a grocery store and not see some sort of inflationary effect,” said Jason Miller, a professor of supply chain management at Michigan State University.

Also read: US President Donald Trump considering sanction relief for Russia: Report

How will grocery prices in US be affected?

Fresh produce

Fresh produce, the maximum of which is imported from Mexico, is one of the first categories that is likely to be affected. The hike in prices is likely to come into effect within a couple of weeks. 

These items, including avocados, tomatoes, and strawberries, have a short shelf life. Grocery stores lack substantial inventory, meaning that consumers will quickly find produce that is subject to Trump's tariffs. 

Liquor

The surge in prices is also going to affect liquor aisles, especially beer and tequila. In 2023, nearly three-quarters of US agricultural imports from Mexico consisted of vegetables, fruits, beverages, and distilled spirits. 

Also read: How China is targeting US agriculture with retaliatory tariffs as Trump begins trade war

Agricultural products 

The US has been importing a wide range of agricultural products from Canada, including meat and grains. 

Moreover, maple syrup would also become even more costlier as Canada accounts for roughly 70 per cent of global maple syrup production. Notably, more than 60 per cent of its maple exports went to the US in 2023. 

Car prices 

The incoming tariffs are also going to affect car prices for Americans. This is because auto manufacturers ship tens of billions of dollars worth of finished vehicles as well as engines, transmissions, and other components. 

Meanwhile, goods worth billions of dollars are imported from Chinese part manufacturers.

Also read: 'Americans will pay more for groceries, lose jobs'; Canada set to impose retaliatory tariffs on US

(With inputs from agencies)