From timber to tech: How the new tariffs could hit your wallet

President Trump imposed a 25% tariff on most imports from Mexico and Canada on Tuesday, creating uncertainty in U.S. as well as global markets and spurring concerns over the price of goods. Mexico and Canada have retaliated with their own tariffs on U.S. exports.

President Trump's tariffs were justified by trade deficits with Canada and Mexico as well as concerns over fentanyl crossing the U.S. border from these countries. The tariffs have already caused major stock market declines, raising concerns about inflation and uncertainty for U.S. businesses.

Related: Stock market losses cause strain on Oklahoma businesses

Businesses and consumers in the United States rely heavily on imports to keep their industries functioning and to fulfill consumer demand. Here's a breakdown of what is going to be tariffed from each country:

Canada

Oil and Petroleum Products

According to the Associated Press, the United States imports $114.2 billion worth of oil and petroleum products. The 25% tariffs placed on these products would raise that cost of import to $142.75 billion, with the difference paid by consumers and businesses at the gas pump.

Timber

Timber is a crucial component of the American construction industry, which was valued at around $13 trillion in 2023. This will effectively place 25% higher operating costs on U.S. construction companies until timber can be allocated from sources with comparable prices and quantities.

According to Natural Resources Canada, Canada produced around $45.6 billion in forest products in 2022, with the majority exported to the United States. With the new tariffs, the price for Canada's entire production amount would rise to $57 billion.

Auto Parts

Canada is a major exporter of auto parts, with many sent to auto manufacturers within the United States. Gear boxes, drive-axles, suspension systems, and mufflers are examples of the types of components that the U.S. imports from Canada.

According to the International Trade Administration, in 2021, Canada exported $8.4 billion worth of auto parts to the United States. The new tariffs would raise the price of that amount to $10.5 billion.

Metal Products

Aluminum, bauxite, and other metal products import totals from Canada amount to $19.3 billion, according to the Associated Press. Aluminum has a variety of uses for American manufacturers, including transportation (aircraft, cars), packaging, construction, appliances, and electrical transmission lines.

Aluminum is produced from bauxite, which is the primary ore of aluminum. With a 25% tariff on these goods, the cumulative cost of import for these crucial metals rises to $24.1 billion with the difference passed on to manufacturers.

Mexico

Agricultural Products

According to the U.S. Department of Agriculture, Mexico's agricultural exports to all countries totaled about $41.9 billion in 2023, with the U.S. purchasing approximately 92% of those, totaling approximately $38.5 billion of costs to U.S. consumers.

With a 25% tariff placed on agricultural products, import costs for foods including tomatoes, avocados, or other fruits could climb to a total of $48.1, with $9.6 billion in costs passed on to the consumer.

Vehicles

According to the International Trade Administration, Mexico is the seventh-largest producer of cars in the world, producing 3.5 million vehicles annually. 88% of vehicles made in Mexico are exported, with 76% heading to the United States. Automakers in Mexico include Audi, BMW, Ford, Honda, Mercedes-Benz, Toyota, and Tesla. The U.S. imported approximately $51.2 billion in automobiles from Mexico in 2022. With a 25% tariff, that amount would be raised to $64 billion with prices in the U.S. changing appropriately.

Electrical Machinery and Equipment

According to the Observatory of Economic Complexity, Mexico exported $81 billion in electrical machinery and electronics. These goods include integrated circuits, broadcasting equipment, telephones, insulated wire, and even video displays. All products manufactured in the United States that use these components in their manufacturing processes would increase in price, with a total of $20.3 billion in costs passed on to businesses and consumers.

Related: Stock market losses cause strain on Oklahoma businesses