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Trump's latest tariffs could have Americans paying more for these items from Mexico and EU

Trump's latest tariffs could have Americans paying more for these items from Mexico and EU
The US buys more from the EU than any other country, but tariffs on all 27 member nations could mean prices on everything from French cheese to Italian leather, German electronics, and Spanish pharmaceuticals, as well as medicine and vehicles. Negotiations are ongoing, but if these tariffs go through, the EU says it will retaliate. That could impact with the US exports over to Europe, including things like crude oil, pharmaceuticals, aircraft, auto. Mobiles and medical equipment. Meanwhile, Mexico is the 2nd largest exporter and importer of US goods. The most traded items are vehicles, electrical machinery, medical devices as well. Agriculture makes up about 10% of US imports from Mexico. That includes veggies, fruit, beer, as well as liquor. And in his letter, President Trump said part of the reason for the new tariff was to get Mexico to do more to stop the flow of migrants. And fentanyl to the US and staying in Mexico, another policy kicks in today hiking tomato import taxes 21%. The administration argues ending this decades old trade agreement will drive down prices, but opponents say otherwise. That's because Mexico supplies about 70% of the US tomato market with some 4 billion pounds of tomatoes each year. Advocates say that the tax will encourage domestic tomato growing. The administration though believes Mexican farmers have purposely sold tomatoes for less than what they cost to grow in order to increase their sales. Mexico threatened to tax American pork and chicken in return. Reporting in Washington, I'm Amy Lou.
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Updated: 2:31 PM CDT Jul 14, 2025
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Trump's latest tariffs could have Americans paying more for these items from Mexico and EU
CNN logo
Updated: 2:31 PM CDT Jul 14, 2025
Editorial Standards
President Donald Trump expanded his tariff threats over the weekend, calling for 30% levies on two of America's largest trading partners: the European Union and Mexico.Those tariffs are set to take effect August 1, unless either party inks a trade deal or takes other measures that cause the president to reverse course. If that does not happen, Americans could get stuck paying more for an extensive list of goods.But as is the case with the various tariffs Trump has already imposed — including the nearly universal 10% and the 25% tariffs on goods from Canada and Mexico that don't already comply with his own free-trade deal known as the United States-Mexico-Canada-Agreement — it can take time for tariffs to translate into higher prices.For instance, inflation reports from the last three months have shown prices have remained stable despite higher tariffs. The Trump administration maintains that "the cost of tariffs will be borne by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market," Kush Desai, a White House spokesperson, said in a statement to CNN.That's not exactly the full story, though, given importers pay tariffs up front, and while they may absorb some of the tax themselves, oftentimes they end up having to pass it on to consumers via higher prices.If Trump follows through with the 30% tariffs, here's what Americans could shell out more money for:ProduceAlready, tomato prices are poised to increase as of Monday, with a key tomato-specific free-trade agreement between the United States and Mexico set to expire.But that's hardly the only produce Mexico ships to the U.S. that could get more expensive.Last year, the U.S. imported $46 billion of agricultural products from Mexico, according to data from the US Department of Agriculture. That includes $8.3 billion worth of fresh vegetables and $9 billion of fresh fruits, with avocados accounting for $3.1 billion of that total.Medical equipment and surgical suppliesMany of the EU's biggest exports to the U.S. are already facing higher tariffs in Trump's second term. That includes 25% tariffs on cars and car parts as well as 50% tariffs on steel and aluminum. Trump has also said tariffs on semiconductors and pharmaceuticals, two other big sources of EU exports to the U.S., are in the works.The 30% tariffs on the EU, if implemented, would be "separate" from sectoral tariffs, Trump said in his letter to European Commission President Ursula von der Leyen.Putting those sectoral tariffs aside, Americans may have to pay more for another top EU export to the U.S.: medical equipment.Last year, the U.S. imported $16 billion worth of medical equipment and surgical supplies from the EU, according to US Commerce Department data.ElectronicsAfter Trump slapped higher tariffs on China in his first term, the U.S. has looked more to Mexico for electronics than to China, which used to be a preferred source.Now, as the U.S.'s biggest trading partner, the top foreign source of electronic goods that came in to the U.S. last year was Mexico. That includes $49 billion worth of computers, $20 billion worth of electrical equipment and $13 billion of audio and video equipment.AlcoholMexico and the EU each shipped over $11 billion worth of beer, wine and distilled spirits to the US last year, according to USDA data.Meanwhile, the EU has previously indicated it would respond to higher tariffs by taxing American alcoholic beverages at higher levels. That's why the Distilled Spirits Council of the US, whose members include Constellation Brands, Brown-Forman and Bacardi, among several others, has been advocating against higher tariffs on alcohol, especially from the EU, given the negative impact it can have on domestic producers.

President Donald Trump expanded his tariff threats over the weekend, calling for 30% levies on two of America's largest trading partners: the European Union and Mexico.

Those tariffs are set to take effect August 1, unless either party inks a trade deal or takes other measures that cause the president to reverse course. If that does not happen, Americans could get stuck paying more for an extensive list of goods.

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But as is the case with the various tariffs Trump has already imposed — including the nearly universal 10% and the 25% tariffs on goods from Canada and Mexico that don't already comply with his own free-trade deal known as the United States-Mexico-Canada-Agreement — it can take time for tariffs to translate into higher prices.

For instance, inflation reports from the last three months have shown despite higher tariffs. The Trump administration maintains that "the cost of tariffs will be borne by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market," Kush Desai, a White House spokesperson, said in a statement to CNN.

That's not exactly the full story, though, given importers pay tariffs up front, and while they may absorb some of the tax themselves, oftentimes they end up having to pass it on to consumers via higher prices.

If Trump follows through with the 30% tariffs, here's what Americans could shell out more money for:

Produce

Already, as of Monday, with a key tomato-specific free-trade agreement between the United States and Mexico set to expire.

But that's hardly the only produce Mexico ships to the U.S. that could get more expensive.

Last year, the U.S. imported $46 billion of agricultural products from Mexico, according to data from the US Department of Agriculture. That includes $8.3 billion worth of fresh vegetables and $9 billion of fresh fruits, with avocados accounting for $3.1 billion of that total.

Medical equipment and surgical supplies

Many of the EU's biggest exports to the U.S. are already facing higher tariffs in Trump's second term. That includes 25% tariffs on cars and car parts as well as 50% tariffs on steel and aluminum. Trump has also said tariffs on semiconductors and pharmaceuticals, two other big sources of EU exports to the U.S., are in the works.

The 30% tariffs on the EU, if implemented, would be "separate" from sectoral tariffs, Trump said in his letter to European Commission President Ursula von der Leyen.

Putting those sectoral tariffs aside, Americans may have to pay more for another top EU export to the U.S.: medical equipment.

Last year, the U.S. imported $16 billion worth of medical equipment and surgical supplies from the EU, according to US Commerce Department data.

Electronics

After Trump slapped higher tariffs on China in his first term, the U.S. has looked more to Mexico for electronics than to China, which used to be a preferred source.

Now, as the U.S.'s biggest trading partner, the top foreign source of electronic goods that came in to the U.S. last year was Mexico. That includes $49 billion worth of computers, $20 billion worth of electrical equipment and $13 billion of audio and video equipment.

Alcohol

Mexico and the EU each shipped over $11 billion worth of beer, wine and distilled spirits to the US last year, according to USDA data.

Meanwhile, the EU has previously indicated it would respond to higher tariffs by taxing American alcoholic beverages at higher levels. That's why the Distilled Spirits Council of the US, whose members include Constellation Brands, Brown-Forman and Bacardi, among several others, has been advocating against higher tariffs on alcohol, especially from the EU, given the negative impact it can have on domestic producers.