U.S. enacts 25% tariffs on Mexico and Canada imports; Americans may face over $1,000 annual increase

Sweeping import taxes on two of the United States' biggest trading partners are now in effect.

25% tariffs on imports from two countries went into effect just after midnight on March 4, 2025, and could cost Americans more than a thousand dollars a year. 

Why are there tariffs?

President Trump says the tariffs come after irresponsible handling of the northern and southern borders, including fentanyl coming into the United States. He says the tariffs will help to increase manufacturing in the U.S.

CBS News reports, "It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid, or paid off in some other form," Trump said at the White House, after announcing a $100 billion investment by a Taiwanese semiconductor company. "And now we're using them."

How much are the tariffs?

25% tariffs were placed on nearly all imported goods from Mexico and Canada.

The U.S. also imposed 10% tariffs on imports from China on top of those already in place, bringing the total to 20%.

25% tariffs on steel and aluminum imports are set to kick in on March 12th, 2025.

CBS News says, "On Monday, Mr. Trump also celebrated anticipated tariffs on imported agricultural products, which White House press secretary Karoline Leavitt said are a part of the sweeping reciprocal tariffs he's promised for nations that impose tariffs on U.S. goods. "

How does this affect U.S. citizens?

The tariffs already made an impact on Wall Street. Renewed fears of a North American trade war sent the stock tumbling on Monday after news of the tariffs going into effect broke out.

A study estimated the tariffs could cost the average U.S. family more than $1,200 a year. Economists say the price of everything from food to lumber, to new cars could increase. 

How are other countries responding?

China and Canada have already responded with their own set of tariffs for the U.S. According to the Associated Press, Beijing responded with tariffs on U.S. farm exports of up to 15%.