Finance

Canada, Mexico tariffs create ‘ripple effects’ on consumer prices

Published

3 months ago

March 4, 2025

Business Finance News

Port Newark Container Terminal on March 3, 2025 in Newark, New Jersey.

Kena Betancur/View Press | Getty Images News | Getty Images

Tariffs on Canada and Mexico took effect Tuesday — and they’re bound to raise prices for consumers, sometimes in unexpected ways, according to economists.

Tariffs are a tax on foreign imports, paid by the United States entity importing a particular good.

President Trump on Tuesday imposed a 25% tariff on Canada and Mexico, the two largest trading partners of the United States. Trump set a lower 10% tariff on Canadian energy.

Businesses typically pass along some of the additional cost of tariffs to consumers, economists said.

Certain products like fruits and vegetables from Mexico and oil from Canada — which are among their major exports to the U.S. — will get more expensive as a result, economists said.

But there are also far-reaching impacts across supply chains that aren’t as clear-cut, they said.

“Tariffs create ripple effects that move through complex supply chains in ways that aren’t always obvious,” Travis Tokar, professor of supply chain management at Texas Christian University, wrote in an e-mail.

Such dynamics make it challenging to predict precise product and price impacts, Tokar said.

For example, take a fast-food chicken sandwich. While none of its ingredients may come directly from Canada or Mexico, the aluminum foil used in its packaging might — driving up costs that could be passed on to consumers, Tokar said.

Nearly everything consumers buy is transported by trucks fueled by refined oil products — meaning the impact of tariffs on Canadian crude oil “could be much broader than it appears at first glance,” Tokar said.

The U.S. sources almost half of its foreign fuel from Canada, according to the Peterson Institute for International Economics.

“Costs eventually have to go through the supply chain” to the end consumer, said Mary Lovely, a senior fellow at the Peterson Institute for International Economics.

How much tariffs may cost the typical person

The U.S. traded $1.6 trillion of goods with Canada and Mexico in 2024, accounting for more than 30% of total U.S. trade, according to Census Bureau data as of December.

Tariffs on Canada and Mexico are expected to cost the average American household $930 in 2026, according to a January analysis by the Urban-Brookings Tax Policy Center.

The levies would cost the typical household $1,200 a year after also accounting for tariffs on China, according to a PIIE analysis. (The analysis only considered a 10% tariff on Chinese imports that Trump imposed in February; he put another 10% tariff in place Tuesday.)

That PIIE assessment of consumer impact is “conservative,” said Lovely.

For one, it doesn’t factor how domestic manufacturers would likely respond to less foreign competition, she said.

“These tariffs will increase the price of imported goods,” and domestic producers would likely raise their prices to “match” those of their foreign counterparts, said Alexander Field, an economics professor at Santa Clara University.

‘Hugely disruptive’ for auto sector

Consumer impact will also depend on the particular industry and company.

Economists expect the automobile industry to be the most impacted sector, since automakers have extensive supply chains built up across North America.

A new car that’s assembled in Alabama, for example, may seem unaffected by the tariffs — but many of those car parts may come from Mexico or Canada, Tokar said.

Major automakers like Ford, General Motors and Stellantis may “face higher production costs due to the reliance on cross-border supply chains for parts and vehicles,” according to a Bank of America Global Research note on Monday.

All told, Canada and Mexico tariffs could add almost $6,000 to the cost of a car, according to an estimate from investment bank Benchmark Co. in February. That dynamic is expected to drive up car insurance premiums.

“This will be hugely disruptive for the auto industry,” said Douglas Irwin, an economics professor at Dartmouth College and author of “Clashing over Commerce: A History of U.S. Trade Policy.”

Fresh produce could see swift price hikes

President Donald Trump signs an executive order in the Oval Office on Feb. 25, 2025. Trump directed the Commerce Department to open an investigation into potential tariffs for copper imports.

Alex Wong | Getty Images News | Getty Images

Brian Cornell, the CEO of Target, said Mexico tariffs could force the company to raise prices on fruits and vegetables — including strawberries, avocados and bananas — within a few days.

Food prices overall would rise nearly 2% in the short term, according to a Yale budget Lab analysis of Canada, Mexico and China tariffs. Fresh produce prices would rise almost 3%.

Construction materials are also a big export from Canada — including more than 40% of U.S. imports of wood products, according to PIIE.

“If you’re doing a renovation this summer, you’re kind of out of luck,” Lovely said.

Big corporations may be in a position to absorb some of the tariff cost, instead of passing on everything to consumers, Lovely said. But agricultural producers may not be in a position to do that, for example, since there are often “very low margins across the supply chain,” she said.

Even businesses that absorb some of the cost — to avoid immediate sticker shock for consumers — means they have less profit to invest in new equipment, hire workers or develop new products, which creates an “economic drag that is less visible but still significant,” Tokar said.

Retaliation also has an effect

Consumers would also be impacted by foreign retaliation on U.S. trade — something to which officials in Mexico, Canada and China have already committed.

“You don’t put these kinds of tariffs in place without expecting retaliation, and that’s happening right now,” said Field.

Canadian Prime Minister Justin Trudeau on Tuesday announced a 25% levy on C$30 billion worth of U.S. imports, effective immediately. Tariffs on another C$125 billion in U.S. goods will take effect in 21 days, he said.

Canada's Trudeau: We will not back down from a fight

Trump responded to the measures Tuesday by vowing additional tariffs on Canada.

Ontario will impose a 25% tax on electricity it exports to 1.5 million homes in Minnesota, Michigan and New York in retaliation to Trump’s tariffs, Doug Ford, the province’s leader, told The Wall Street Journal.

China also announced retaliatory tariffs of up to 15% targeted at U.S. agriculture. U.S. corn will face a 15% levy, while soybeans will be hit with a 10% duty, for example. Mexican President Claudia Sheinbaum plans to announce retaliatory measures on Sunday.

Finance

Israel-Iran attacks and the 2 other things that drove the stock market this week

Published

1 hour ago

June 14, 2025

Business Finance News

Finance

Uranium as big play due to AI-driven energy demand

Published

2 hours ago

June 14, 2025

Business Finance News

Uranium is having a “glow up” moment… will it last?

The uranium trade’s shelf life may last years.

According to Sprott Asset Management CEO John Ciampaglia, a “real shift” upward is underway due to increasing global energy demand — particularly as major tech companies look to power artificial intelligence data centers.

“We’ve been talking about uranium and nuclear energy non-stop for four years at Sprott, and we’ve been incredibly bullish on the segment,” he told CNBC’s “ETF Edge” this week.

Ciampaglia’s firm runs the Sprott Physical Uranium Trust (SRUUF), which Morningstar ranks as the world’s largest physical uranium fund. It’s up 22% over the past two months.

The firm is also behind the Sprott Uranium Miners ETF (URNM), which is up almost 38% over the past two months. The Sprott website lists Cameco and NAC Kazatomprom JSC as the top two holdings in the fund as of June 12.

“It’s [uranium] a reliable form of energy. It has zero greenhouse gases. It has a very good long-term track record,” Ciampaglia said. “It provides a lot of electricity on a large scale, and that’s right now what the grid is calling for.”

Ciampaglia finds attitudes are changing toward nuclear energy because it offers energy security with a low carbon footprint. Uranium is “incredibly energy-dense” compared to most fossil fuels, he said, which makes it a promising option to ensure energy security.

He cited the 2022 energy crisis in Europe after Russia cut its oil supply to the region and April’s grid failure in Spain and Portugal as cases for more secure energy sources.

“We think this trend is long term and secular and durable,” Ciampaglia said. “With the exception of Germany, I think every country around the world has flipped back to nuclear power, which is a very powerful signal.”

‘You need reliable power’

VanEck CEO Jan van Eck is also heavily involved in the uranium space.

“You need reliable power,” he said. “These data centers can’t go down for a fraction of a second. They need to be running all the time.”

His firm is behind the VanEck Uranium and Nuclear ETF (NLR), which is up about 42% over the past two months. According to VanEck’s website as of June 12, its top three holdings are Oklo, Nuscale Power and Constellation Energy.

But he contends there’s a potential downside to the uranium trade: Building new nuclear power plants can take years.

“What’s going to happen in the meantime?” Van Eck said. “Investors are not patient, as we know.”

Van Eck also thinks it’s possible the Trump administration’s positive attitude toward nuclear power could fast track development.

He highlighted nuclear technology company Oklo during the interview. Its shares soared on Wednesday after the company announced it was anticipating a deal with the Air Force to supply nuclear power to a base in Alaska.

The agreement came not long after President Donald Trump in May signed a series of executive orders to rework the Nuclear Regulatory Commission, expedite new reactor construction and expand the domestic uranium industry.

“Trump controls federal land, so that’s not a NIMBY [not in my backyard] kind of potential risk,” said Van Eck. “They’re going to leverage that hard to start to show the safety of these newer, smaller technologies.”

Finance

Amazon is selling an $800 portable power station for $550, and shoppers 'love the mobile design and durability'

Published

13 hours ago

June 14, 2025

Business Finance News

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

Camping is a fun summer activity. What’s not fun is having no access to electricity. You can’t charge your phone, watch TV, or make your morning cup of coffee. Thankfully, portable power stations allow you to do all that and more. It’s literally like bringing along a giant battery for all of your electronics. Portable power stations are also good to have around your home in case of power outages.

There’s just the problem of price. Portable power stations are notoriously expensive, especially ones that have a larger energy storage capacity. The good news is that we were able to find a solid deal on a 1,056-watt-hour (or 1 kilowatt-hour) power station. This $800 Anker Solix C1000 Portable Power Station is $550 at Amazon for a limited time. At 31% off, you’re saving $250.

Anker Solix C1000 Portable Power Station, $550 (was $800) at Amazon

The Anker Solix C1000 features a power output of 1,800 watts, making it strong enough to handle multiple electronics and small appliances at once. It has 11total power ports. You get two USB-A and USB-C ports, a car socket, and six AC outlets. Additionally, it also functions as a night light and has a handle for easy carrying. It weighs about 28 pounds.

Now let’s talk about charging. There are two ways you can charge the Anker Solix C1000. The first way is just by plugging it into a standard AC wall outlet. Or if you have the portable solar panels (sold separately), you simply connect the wires and place the panels in the sun. When plugged into an AC outlet, your power station can be fully charged in about an hour. If you charge up with solar, it’ll likely take around two hours. The digital display on the front of the power station shows you the battery and charging status.

Shoppers have found multiple uses for this portable power station. “We bought it mainly for short power outages and to run our refrigerator, but it will have many other uses for sure,” one shopper said. “Just this past week, I had to do some repairs to our floating dock, and there is no extension cord long enough to reach, so I brought this Anker Solix C1000 and it powered our two saws and drills without any issue at all. It’s very cool and has lots of different outlets. Very impressive unit!”

Others say they get daily use out of it. “I love it. I use it every day. I am traveling and camping everywhere,” one shopper shared. “I use it to power a car mobile refrigerator, a little portable air conditioner, and of course, my iPhone and other electronics, and sometimes an electric stove. It can take on all tasks with no problem. I love the mobile design and durability.”

You don’t need to be ‘roughing it’ the next time you go camping. Consider grabbing the Anker Solix C1000 Portable Power Station to keep all your devices charged and bring along a few essentials for the kitchen or living room. You’ll feel like you never left home.