The Avocado War: how the duties will hit the USA

The duties imposed by the American president Donald Trump will have heavy effects on the economy of Canada and Mexico. But there will also be important consequences for US consumers since the United States import large quantities of fruit and vegetables from Mexico and Energy from Canada.

The war of avocado and tomatoes
Certainly, they bet analysts, there will be a surge in food prices, fruit and vegetables on everything, in American supermarkets. 44% of 195.9 billion of food imports in the US arrive from Mexico and Canada
Mexico is the largest Foreign source of fruit and vegetables For the United States: According to the United States’s Department of Agriculture, Mexico provided 63% of the United States’s imports of vegetables and almost half of the imports of fruit and walnuts (47%) of the United States in 2023. Furthermore, Over 80% of US avocados come from Mexico, Which means that higher import costs will increase the prices of products such as Guacamole. The country also exports more than 1.5 billion dollars of beef and pork to the United States.

Cars
Also on cars the cost will be high, given the large amount of vehicles of many houses (also Chinese) assembled in Mexico and Canada. The cost of the cars is another primary driver of inflation. The automotive sector and car spare parts manufacturers employ around 11 million jobs in the three countries.

The prices of homes
The United States imports construction materials from Canada, which means that the rates could increase the costs of the accommodation. Over 70% of the imports of two fundamental materials for the manufacturers of houses, coniferous and plaster wood, it comes from Canada and Mexico, underlined the president of the National Association of Home Builders Carl Harris. “The timber rates and other building materials increase the construction costs and discourage new developments,” he added.

Canadian oil
Despite having reached energy independence, the United States depend on the imports of Canadian oil which represents over 60% of American imports.
The crude oil that comes from Mexico and Canada is the most suitable to be worked in modern content pollution refineries, much lighter than the American one. In particular for the Canada, supplier of 4 million barrels per day which generated a cash flow of 100 billion dollars last year, Trump ordered a special regime: a duty reduced to 10%. But this will last only for two weeks, later, if Ottawa does not seal the borders, they will go to 25%.