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Trump threatens 25% tariffs as U.S. seeks better trade terms with neighbors to the north and south

Trucks wait in a queue to cross into the United States at the Otay commercial crossing port in Tijuana, Mexico on Nov. 26, 2024. U.S. consumers spend billions of dollars on goods from Mexico each year. Photo: guillermo arias/Agence France-Presse/Getty Images

Americans buy $900 billion a year in food, cars, TVs, toys, appliances and other stuff from Mexico and Canada — and the cost of these products could rise if President Trump carries out his threat to apply 25% tariffs.

Few trade experts and economists believe the president will follow through with such steep tariffs, viewing them as a negotiating tactic to win concessions for the United States.

Jeffry Bartash is a reporter for MarketWatch in Washington.