Tariffs On EU, Mexico Could Mean Soaring Prices On These Products

U.S. consumers could soon pay more for everything from French wine to Italian leather goods to German electronics to Spanish pharmaceuticals due to the surprise 30 percent tariffs on European Union imports announced last weekend by President Donald Trump.

The hefty tariffs could have repercussions for governments, companies and consumers on both sides of the Atlantic. The EU is America’s biggest business partner and the world’s largest trading bloc. The EU trade ministers, meeting Monday in Brussels, said the tariffs are “absolutely unacceptable” and said they are studying reciprocal measures.

Maros Sefcovic, one of the European Union's top trade negotiators, was expected to meet with the Trump administration Wednesday in a bid to stop the painful 30 percent tariffs from kicking in on Aug. 1.

The tariffs, also announced for Mexico, are set to start on Aug. 1 unless deals are reached. They could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the U.S., and destabilize economies from Portugal to Norway. Any retaliatory tariffs would be delayed until Aug. 1.

Also, EU leaders warn, look for increases in the cost of low-margin goods like Belgian chocolate, Irish butter and Italian olive oil.

The EU and Mexico are both among the largest U.S. trading partners. Last week, Trump announced 35 percent tariffs on Canadian goods coming across the border.

Below are some things that could become more expensive or difficult to find:

Tomatoes And Other Fresh Produce

A tomato-specific free-trade agreement in place between the United States and Mexico since 2019 expired Monday, which could cause tomato prices to increase. Tomatoes are now subject to a 20.91 percent tariff.

Avocados, which accounted for $3.1 billion of the $9 billion worth of fruits imported from Mexico last year, according to USDA data. Overall, the U.S. imported $46 billion worth of agricultural products from Mexico in 2024, including $8.3 billion worth of fresh vegetables, CNN reported.

Wine And Other Alcohol

The Italian winemakers association UIV said the tariffs could be a “death blow” to the European food industry and lead to price hikes for American consumers.

The 30 percent tariff on wine “would virtually be an embargo” on 80 percent of Italian wines, the group said in a translated statement, NBC News reported.

Other alcoholic beverages could be affected as well, CNN reported. According to USDA data, Mexico and the EU each shipped more than $11 billion worth of beer, wine and distilled spirits to the United States last year.

Cheese

Francois Xavier Huard, CEO of dairy association FNIL, told Reuters that Trump’s announcement of the tariffs were “a real shock for milk and cheese producers” and said the U.S. is an important market for them.

Jean-François Loiseau, president of food lobby group ANIA, told the outlet the 30 percent duty would be “disastrous” overall for France’s food industry.

Dairy producers in France export nearly half of their production, including to the United States, which primarily imports cheeses such as brie, but also yogurt and butter. According to the Reuters report, the dairy industry risks losing about $409million worth of dairy products previously exported to the U.S. annually.

The U.S. is also an important market for French wine.

“Products like wine, especially, are consumed for pleasure — if you have less money to spend, you might forgo the purchase,” said Yannick Fialip, head of association CNPA, which promotes French food exports, told Reuters. “We will be less competitive.”

Shoes And Other Apparel

The Budget Lab at Yale said the tariffs disproportionately affect clothing and textiles, with consumers facing 44 percent higher shoe prices and 40 percent higher apparel prices in the short term. In the longer term, shoe and apparel prices are expected to stay 20 percent and 18 percent higher, respectively.

Cars And Car Parts

With 25 percent tariffs already in place, cars like Mercedes-Benz, Porsche, Audi, BMW and Volkswagen produced in the EU could become more expensive. Other vehicles and car parts would also be affected.

“The costs for our companies have already reached the billions—and with each passing day, the total continues to grow,” the German auto trade group VDA told NBC News in a statement Monday.

Pharmaceuticals

Trump said Tuesday he would likely give pharmaceutical companies such as Eli Lilly & Co., Merck & Co. and Pfizer Inc. that produce drugs overseas time to adjust their business models, Bloomberg reported.

“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump told reporters Tuesday as he returned to Washington after attending an artificial intelligence summit in Pittsburgh.

Pfizer and other companies, including Bayer, Novartis and Moderna, have significant subsidiaries in Spain, and Spanish companies such as Grifols, Rovi, Kern Pharma, Laboratorios Cinfa, and Bioibérica face increased duties on products exported to the U.S.

Semiconductors

Trump said Tuesday his timeline for implementing tariffs on semiconductors, a fundamental building block in U.S. technology, is “similar” but said it is “less complicated” to impose duties on chips.

Consumer Electronics

After Trump slapped tariffs on China during his first term, Mexico became the top source of electronic goods that came into the United States. Last year, the U.S. imported $49 billion worth of computers, $20 billion worth of electrical equipment, and $13 billion of audio and video equipment from Mexico, according to CNN.

Last year, the U.S. imported more than $11 billion worth of electrical and electronic equipment from Germany, including electrical transformers, static converters, inductors, and electrical machines and apparatus. The US is a significant market for German exports overall, with electrical and electronic equipment being a major component of this trade, according to Trading Economics.

Medical Equipment And Surgical Supplies

Medical devices are among the most traded items between the United States and Mexico, and that could have broad effects on health care costs. Some 77 companies in Northern Baja manufacture medical devices that end up in U.S. hospitals and clinics.

“Implementing a 25 percent tariff on the medical device sector means a 25 percent additional cost for international companies that they will have to pay for our products,” Alfredo Dueñez, president of Baja California’s Medical Device Cluster, told news station KGET.

The Associated Press contributed reporting.