RI Consumers Could Pay More For These Products Under New Tariffs

Updated at 5:25 p.m.: Canadian Prime Minister Justin Trudeau announced Monday that tariffs on Canada initially scheduled start at midnight Tuesday have been put on hold.

After a "good call" with President Donald Trump on Monday, Trudeau said on X that the proposed tariffs"... will be paused for at least 30 days while we work together."

The prime minister added in his statement that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

Previous reporting as follows:

RHODE ISLAND — Experts predict the prices of some products could increase for Rhode Island consumers as a result of retaliatory tariffs President Donald Trump imposed Saturday on three key U.S. trade partners — Mexico, Canada and China.

The tariffs on Mexico, at least, won’t take effect for another month under an agreement reached between Trump and Mexico’s President Claudia Sheinbaum, NBC News reported Monday morning. Trump spoke with Canadian Prime Minister Justin Trudeau Monday morning, and the two leaders were expected to talk again in the afternoon.

The tariffs, which were initially scheduled to take effect at midnight Tuesday, impose an additional 25 percent tariff on imports from Canada, with a lower 10 percent charge on oil, natural gas, electricity and energy products. The tariff on products imported from Mexico is across the board, and China faces an additional 10 percent tariff.

The trio of executive orders almost instantly threw the world economy and his own goal of cutting inflation into turmoil. Trump imposed the tariffs without congressional approval and by his own acknowledgment of the perilous chance of “some pain” in the form of higher inflation, job losses and worse growth.

The effects of the tariffs could be felt by consumers in Rhode Island within a couple of weeks if U.S. businesses decide to pass the retaliatory taxes along to consumers.

The developments Monday put on hold at least for now the high prices on avocados, strawberries, tomatoes, and other fruit and vegetables imported from Mexico. If the tariffs take effect, beer and tequila are likely to cost more, too.

In 2023, almost three-quarters of the agricultural imports into the United States for Mexico consisted of vegetables, fruit, beverages and distilled spirits, according to the USDA.

About 70 percent of the global supply of maple syrup comes from Canada, and about 60 percent of its exports went to the United States in 2023.

Rhode Island residents also could pay higher prices for cars. Automakers ship tens of billions of dollars worth of automobiles, engines, transmissions and other components across the borders of both Mexico and Canada every week, and import billions more in parts from China. General Motors produces nearly 40 percent of all vehicles made in North America in Canada and Mexico.

Gas prices could go up, too. The United States imports about 60 percent of its oil from Canada. The tariff is lower than on other goods from Canada, and analysts expect it to be absorbed by a combination of oil producers in Canada and Mexico, U.S. refineries and U.S. consumers, The New York Times reported.

Goods from China, especially computers, cellphones and video games, could become more expensive over the next couple of months. The United States imports about 60 percent of its footwear from China, and those prices could go up as well.

Tariffs on lumber and building supplies from Canada could increase the cost of building a house, worsening the housing affordability crisis. About 70 percent of the softwood lumber and gypsum, which is used for drywall, are imported from Canada and Mexico, according to the National Association of Home Builders.

“Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices,” Carl Harris, the chairman of the association, said in a statement on Saturday.

Trump used the International Emergency Economic Powers Act to declare an economic emergency in the executive orders and implement his tariffs.

There are more than three dozen active emergencies, including measures taken to respond to the 1979 Iran hostage crisis, human rights violations in Venezuela, nuclear weapon development in North Korea and multiple actions taken by China and Russia.

The law enables a president to freeze and block transactions in response to "unusual and extraordinary" threats outside the United States.

The Associated Press contributed reporting.

Have a news tip? Email jimmy.bentley@patch.com.