Industries Where Tariffs Could Hit Hardest

Smaller companies are likely to see a negative impact from new tariffs. The reliance on imported products by small companies throughout various industries has risen over the past few years. It is more difficult for smaller companies to pass along tariff costs to consumers, because of distribution channels and capital constraints, and they are forced to absorb additional costs which affects profitability. The United States is one of the world’s largest importers, with a diverse range of products coming from countries including China, Japan, Mexico, Canada, and Germany.

Based on the newly imposed tariffs as of March 2025, the following product categories are anticipated to be significantly affected:

• Automobiles and auto parts: The 25% tariff on imports from Canada and Mexico is likely to impact the automotive industry substantially, including the major auto manufacturers and smaller suppliers.

• Fresh produce: Fruits and vegetables imported from Mexico and Canada will face increased costs.

• Electronics: Devices such as phones, computers, and other electronic components from China will be subject to a 20% tariff.

• Lumber: Canadian lumber imports will be affected by the 25% tariff, affecting the housing market and home builders.

• Energy products: While Canadian energy resources face a lower 10% tariff, they are still impacted.

• Agricultural products: U.S. exports of chicken, wheat, corn, cotton, soybeans, and pork to China will likely face retaliatory tariffs.

Actual tariffs may differ from what the White House has announced as of the beginning of March. Implementation regarding targeted countries and products may change as the administration negotiates with the country’s trade partners.

Sources: U.S. Bureau of Economic Analysis, Imports of Goods and Services, provided by the Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org

- Tony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management