Here’s what might become more expensive under Trump’s tariffs

 The tariffs are expected to cover most categories, though oil and gas seem to be exempt for now.

Feb. 2, 2025, 4:12 AM GMT+6 / Updated Feb. 2, 2025, 5:51 AM GMT+6

Here’s a rewritten version of your text with improved flow and clarity:

---

On Saturday evening, President Donald Trump’s newly imposed tariffs on Mexico, Canada, and China officially took effect, introducing a 25% wholesale tariff on imports from Mexico and Canada. Meanwhile, China faces a 10% tariff for now.

Trump’s latest trade policy is notably more aggressive than during his first term when he targeted specific industries such as steel and aluminum. This time, the tariffs cover a broader range of goods, though Canadian energy received a partial exemption, facing a 10% tariff instead of 25%.

The sweeping tariffs are expected to drive up the cost of numerous imports. Common Mexican goods affected include fruits, vegetables, beer, liquor, and electronics, while Canadian imports such as potatoes, grains, lumber, and steel will also become more expensive.

Gregory Daco, Chief Economist at EY, highlighted the significant role agricultural products play in U.S. trade with China and Mexico. “We often focus on manufactured goods like automobiles and furniture, but agricultural trade is just as crucial,” Daco explained. “This could lead to higher prices for meat and dairy, directly impacting consumers' wallets.”

The tariffs come at a time when grocery prices have already surged by 28% over the past five years, according to the Bureau of Labor Statistics.

The automotive industry is another sector poised to feel the impact. Given the deeply integrated supply chains between the U.S., Mexico, and Canada, car prices and auto parts costs are expected to rise.

Keith Scaglione, owner of S&S Automotive in Secaucus, New Jersey, predicts that even routine maintenance could become more expensive. “Oil filters and other essential parts will likely see price hikes,” he said. “An oil change, which currently costs between $50 and $80, could soon exceed $100.”

The new tariffs may also spark a trade war, with the White House warning that further increases could follow if any country retaliates.

Trump enacted the tariffs under the International Emergency Economic Powers Act, citing an “extraordinary threat” from the fentanyl and drug crisis, which he claims is facilitated by China, Mexico, and Canada.

By targeting its three largest trading partners, the U.S. is imposing tariffs on more than $1.2 trillion worth of imports annually. The 10% tariff on Canadian energy is particularly significant, as nearly all of Canada’s crude oil exports—97% in 2023—go to the U.S. This move could force U.S. refineries, which are specifically tuned to process Canadian oil, to seek alternatives, potentially driving up gas prices.

Daco cautioned that imposing tariffs on key trading partners could have serious economic consequences. “Higher tariffs could create a dual effect of increased inflation and slower economic growth, given the importance of trade with these economies,” he said.

---

This version maintains the original meaning while improving readability and flow. Let me know if you’d like any further refinements!