Earlier this week, President Trump announced tariffs of 25% on all non-energy imports from Canada, in addition to 25% tariffs on imports from Mexico. Additionally, the U.S. imposed an additional 10% tariff on imports from China to bring the total rate to 20%.
These tariffs are set to impact mainly food categories in Mexico and Canada, and apparel and general merchandise categories in China, according to data from Coresight Research.
In response to U.S. tariffs, Mexico announced that it will be imposing reciprocal tariffs, the details of which are not clear yet. Up north, Canada plans to impose 25% tariffs on roughly $20 billion of imports from the U.S., which will be extended to $125 billion after 21 days. China also has plans to impose new tariffs of up to 15% on agricultural imports.
The tariffs could drive up food prices for American consumers, however only about 6% of food consumed in the U.S. come from Mexico and Canada, with Coresight Research noting that the impact would likely be limited.
The categories that will be impacted the most from Mexico are fruit, vegetables and beverages. The top Canadian imports include grain, vegetable oil and vegetables.
“Overall, imports account for the greatest share of food consumption in the categories of sweeteners, and fruits and tree nuts (over 40% share each); and sugar and confections, and vegetables (over 30% share each),” Coresight’s report read.
Tariff Perceptions
The Coresight survey asked consumers about their perceptions of the new tariffs. Overall, the majority of respondents had negative perceptions of the tariffs, with the net proportion of negative responses jumping from 17.5% in late January to 33% in early March.
According to responses, higher prices for goods remain the top concern for consumers, and levels of concern have increased to almost two-thirds of respondents.
“Despite net-negative perceptions, views on tariffs’ impact on economic growth are closely drawn: About one-quarter perceive slowing or accelerating economic impacts,” the report continued. Of respondents, some 34.2% did not identify a benefit of tariffs versus 13.1% who did not identify a concern.
In Coresight Research’s March 3 survey, 41% of respondents said they had changed or anticipated changing their shopping habits to avoid the effects of the tariffs.
“Without any further mitigation of tariffs, America’s shoppers are likely to be paying higher prices for staples such as fresh foods in the near future, with a follow-on effect seen in apparel and general merchandise, where longer lead times will stagger the impact,” the report read.
Coresight did note, however, that the overall impact would be moderate.
“Retailers that can limit price rises will generally be best placed to gain a competitive advantage and hold or gain market share. However, the bulk of this capability will be driven by structural changes, rather than tactical, short-term reactions. In turn, this suggests advantages for those retailers that have taken, and invested for, a strategic, long-term view,” the report concluded.
