What are tariffs? Here's why they could make beer, books and coffee more expensive

Kinsey Crowley and Jonathan Limehouse, USA TODAY

Tue, Mar 4, 2025, 9:48 AM 3 min read

After a month-long delay, the U.S. has enacted tariffs on goods from the country's top trading partners.

President Donald Trump announced Monday the 25% tariffs on imports from Canada and Mexico would go into effect beginning Tuesday. Trump also doubled tariffs on some Chinese goods from 10% to 20%.

The trade barriers sent stocks tumbling. Economists generally agree that tariffs, a tax on imports, tend to lead to higher prices for consumers. China and Canada have already announced retaliatory tariffs against the U.S., and Mexican President Claudia Sheinbaum said she plans to announce Mexico's retaliatory tariffs and other measures against the U.S. on Sunday.

Together, China, Canada and Mexico make up the U.S.'s biggest trading partners, and Trump has acknowledged the tariffs could cause American consumers "some pain."

Here is what to know about tariffs and how they could impact everyday purchases:

More: How Trump's tariffs could bring a spike to gas pump prices and heating bills

What is a tariff?

A tariff is a form of tax imposed on imports from another country.

Economists generally agree that trade barriers raise consumer prices and negatively impact economic output and income, according to the Tax Foundation, a nonpartisan tax policy nonprofit.

Tariffs create more demand for domestic manufacturers, but those companies are also part of the global supply chain and therefore also impacted by tariffs, experts have previously explained to USA TODAY.

Trump's motivation for implementing tariffs is to get help from China, Canada and Mexico to curb the flow of migrants and illegal drugs into the U.S. The president has insisted that the countries have not done enough to help address what he sees as core issues for his administration.

When the tariffs were first announced in February, Mexico and Canada agreed to do more for the border in order to delay the tariffs by a month. Despite the one-month delay, Trump said they would go into effect beginning Tuesday.

"No room left for Mexico or Canada," Trump said in announcing the end of the delay Monday. “The tariffs – they are all set. They’re going into effect tomorrow.”

What common items does the US import from Canada?

The following common imports from Canada to the U.S., according to the Bureau of Industry and Security and Trading Economics, could be affected by Trump's tariffs: