The recent plan to slap tariffs on Mexico and Canada might end up making your groceries cost more. Picture this: a world where avocados from Mexico and dairy from Canada become pricier at the grocery store. That’s because the US depends on these neighbors for many everyday food items.

Let’s break it down. Mexico is the top supplier of fruits and veggies to the US. Canada leads in grain, livestock, and meats.  These countries are huge when it comes to keeping American grocery shelves stocked.

The White House has confirmed a 25% tariff on goods from these countries. However, it is not clear if all products will be hit with these tariffs. The president has hinted that certain industries, like pharmaceuticals or steel, might be targeted.

For food lovers, this could mean higher prices at the grocery store. Grocery stores don't have much wiggle room when it comes to profits. So, when tariffs increase, they might have to pass on the extra cost to shoppers.

The US typically exports more agricultural goods than it imports. But the value of imports has been increasing faster than exports in the past decade. Climate change has also made the US more reliant on countries like Mexico, where growing conditions are better.

Mexico and Canada have been feeding America for decades. Together, they accounted for nearly $83 billion of the total $196 billion in agricultural goods the US imported. That’s a big chunk of the import pie.

But it’s not just about food. Mexico and Canada are among the US’s biggest trade partners overall. They rank in the top three countries for total goods the US imports. Top imports from these countries include vehicles, vehicle parts, oil, and electronics.

Add to that, the US imported around $467 billion and $337 billion in goods from Mexico and Canada last year, respectively. Think about that the next time you’re shopping for groceries or driving a car made in Mexico or Canada.

Your Groceries Might Get a Price Hike Due to New Tariffs

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