President Donald Trump has made good on his promise to impose sweeping tariffs on Mexico and Canada, sending shockwaves through the economy. As of Tuesday, a 25% import tax now applies to goods from both countries. And experts warn that Latinos in the U.S., especially those with family in Mexico, will feel the effects fast.

According to CBS News, the new tariffs will drive up costs on everything from groceries to gasoline. This will add more financial strain for families already dealing with inflation. The Yale Budget Lab estimates that an average American household could pay an additional $1,600 to $2,000 per year due to these tariffs.

Food, Gas, and Cars—Expect Prices to Jump

For many Latino households in the U.S., the biggest concern is how these tariffs will make everyday essentials more expensive. Mexico is the largest supplier of fruits and vegetables to the U.S.. The country provides fresh produce during winter months when domestic supply is low.

According to USA Today, nearly 77% of fresh produce in the U.S. comes from Mexico. And with a 25% import tax, prices will go up. Target CEO Brian Cornell told the Associated Press that the cost of fruits and vegetables could rise within days, as grocery stores can’t stockpile perishables.

It’s not just food. Gas prices are set to spike due to the 10% tariff on Canadian oil. GasBuddy analyst Patrick De Haan predicts that some U.S. regions will see prices jump by 40 cents per gallon within days. If you fill up a 15-gallon tank, that’s an extra $3 to $6 per trip to the pump.

Then, there are cars. Automobiles rely on cross-border supply chains, meaning parts cross between Mexico, Canada, and the U.S. multiple times before a vehicle is fully assembled. According to a report by the Anderson Economic Group, these tariffs could increase the price of some cars by up to $12,200.

Who’s Paying for These Tariffs? (Spoiler: Not Mexico)

Despite what Trump claims, tariffs are not paid by foreign governments—they’re paid by U.S. importers, which means higher costs for businesses and, ultimately, consumers. CBS News explains that U.S. companies pay these import taxes, and they have two choices: eat the costs or pass them on to consumers.

While some businesses may absorb the expenses, others won’t. Electronics, beer, spirits, and cars are just some of the industries expected to push these costs onto shoppers. The Consumer Technology Association estimates that electronics like laptops and smartphones could see an 11% price hike. At the same time, CNN reports that U.S. beer prices could rise due to tariffs on Mexican tequila and Canadian whiskey.

Mexico and Canada Are Fighting Back

Mexico and Canada aren’t taking Trump’s tariffs lightly. According to NBC News, Mexican President Claudia Sheinbaum announced that Mexico will retaliate with its own tariffs on U.S. goods, set to be revealed Sunday. Meanwhile, Canadian Prime Minister Justin Trudeau is already hitting back with a 25% tax on $155 billion worth of U.S. products.

Trudeau didn’t hold back, addressing Americans directly in a statement: “We don’t want this. We want to work with you as a friend and ally.”

As tensions escalate, trade experts warn that a full-blown trade war between the U.S., Mexico, and Canada could trigger economic instability across North America. CNN analysts even suggest that if these tariffs remain in place, Mexico and Canada could slip into a recession.

What Does This Mean for Latinos in the U.S.?

For Latinos in the U.S., especially those with family in Mexico, these tariffs could be devastating. Many first- and second-generation Mexican Americans send remittances—money sent back home—to help their families. If Mexico’s economy slows down due to trade retaliation, jobs in Mexico could be at risk, making remittances even more crucial.

On the U.S. side, higher food and gas prices hit working-class and lower-income families the hardest. The Yale Budget Lab found that low-income households will feel the brunt of these tariffs three times more than high-income earners.

Meanwhile, businesses that rely on Mexican imports—including restaurants, grocery stores, and auto shops—will face rising costs. Some may be forced to cut hours or lay off workers to stay afloat.

Could Trump Walk Back the Tariffs?

Trump has reversed tariff decisions before, and businesses are pushing hard for him to do it again. According to The Hill, the U.S. Chamber of Commerce called for an immediate rollback, warning that the move could destabilize the North American economy.

Meanwhile, Commerce Secretary Howard Lutnick hinted that a compromise might be coming soon. On Fox Business News, he said Mexico and Canada were “on the phone all day” trying to work something out with the administration. A revised deal could be announced as soon as Wednesday.

Until then, all eyes are on the economic fallout. One thing is clear: this is personal for Latinos in the U.S. Whether it’s higher grocery bills, pricier gas, or strained family budgets, these tariffs are making life more expensive for millions.

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