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Washington, United States — Fresh US tariffs on Canada and Mexico could raise costs of automobiles and building materials, analysts said Tuesday, after President-elect Donald Trump threatened to erect new trade barriers.
Similarly, further tariff hikes on China could add to consumer prices, as the United States is still reliant on the world’s second biggest economy for goods like electronics and batteries.
What products face risks from Trump’s tariff pledges?
Canada: Energy, construction
Canada trade ties are significant, with a highly integrated energy and automotive market, the Congressional Research Service (CRS) noted in July.
Nearly 80 percent of Canada’s 2023 goods exports were US-bound, while about half its goods imports came from the United States.
Canada has been the biggest supplier of US energy imports including crude oil, natural gas and electricity, the CRS added.
Economist Ryan Sweet of Oxford Economics warned that a 25 percent tariff on Canadian goods could hit imported fuels, risking higher energy costs.
“The 2026 midterms are not that far off, and voters don’t forget inflation,” he told AFP.
The United States imports construction materials from Canada, too, he added, and tariffs could drive up housing costs.
Last year, $2.5 billion in goods crossed the US-Canada border daily, said Dennis Darby of industry group Canadian Manufacturers & Exporters.
Imposing tariffs “would also hurt US manufacturers,” he added.
