California gets $64 billion in goods from Mexico. How could Trump tariffs hurt consumers?
Groceries and other goods could become more expensive for Californians after President Donald Trump imposed tariffs on three of the state’s biggest trading partners, economic experts said.
On Tuesday, the Trump administration placed 25% tariffs on products from Mexico and Canada and doubled the tariff on Chinese imports to 20%, the Associated Press reported.
China responded with up to 15% in extra tariffs on a wide range of farm products from the United States, including chicken, wheat and corn.
Canadian Prime Minister Justin Trudeau said he would slap retaliatory tariffs on more than $100 billion of U.S. goods if the taxes were still in place in 21 days.
Mexican President Claudia Sheinbaum also announced plans to respond to the Trump administration tariffs, according to Reuters.
“There is no reason, rationale or justification to support this decision that will affect our people and nations,” Sheinbaum said during a Tuesday news conference.
On Thursday, Trump announced he would postpone the 25% tariffs on Mexico and Canada until April 2, The New York Times reported, delaying the taxes for a second time.
As the fifth-largest economy in the world, California heavily relies on its neighbor to the south for a variety of household goods.
Mexico was California’s third largest import partner in the United States in 2024, according to the latest data from the International Trade Administration.
If Mexican tariffs go into effect, here’s how Californians could be impacted.
What are tariffs?
Tariffs are a tax imposed by governments on the value of imported goods, according to the International Trade Administration.
According to economic experts, massive tax hikes on imported goods from Mexico, Canada and China could rapidly increase costs for U.S. consumers and businesses.
Even though Trump has claimed tariffs are paid by other countries, Americans are typically the ones stuck with paying higher prices.
Tariffs are paid by importers — U.S. companies — with the money going to the U.S. Treasury, international trade economist Matthew Cole told The San Luis Obispo Tribune in January.
Those companies, in turn, typically pass costs onto consumers, resulting in higher price tags for products ranging from cars to gas to grocery store staples, said Cole, an associate professor at Cal Poly in San Luis Obispo.
“(With) any good that has a tariff put on, you can expect the price to go up,” he said.
Cole warned that California industries could experience decreased sales from exports if Trump goes through with his tariff plans, which in turn could spark retaliatory measures and a full on trade war.
What’s California’s trade relationship with Mexico?
Trump’s proposed tariffs could harm several industries in California.
In 2023, California imported nearly $449.5 billion worth of goods from around the world, according to the California Chamber of Commerce.
The state most heavily relied on imports from China, Mexico, Taiwan, Vietnam and Japan, according to the U.S. Department of Commerce.
Mexico was California’s second-best overall trade partner in 2023.
The state also has five major international border crossings with Mexico.
In total, the state traded nearly $98 billion worth of imported and exported goods in 2024 with Mexico, according to data from the International Trade Administration.
What does California import from Mexico?
The Golden State imported $64.3 billion of goods from Mexico in 2024, ranging from cars and trucks to avocados, bell peppers and tomatoes, the International Trade Administration said.
Out of all 50 states, California imported the third-most amount of goods from Mexico.
Here were the state’s top 10 imports from Mexico:
Motor vehicles: $9.46 billion
Audio and video equipment: $7.29 billion
Fruits and tree nuts: $4.71 billion
Motor vehicle parts: $3.96 billion
Medical equipment and supplies: $3.17 billion
Computer equipment: $3.07 billion
Navigational, medical and control instruments: $2.53 billion
Vegetables and melons: $2.24 billion
Goods returned: $1.98 billion
Electrical equipment and components: $1.63 billion
What does California export to Mexico?
California exported goods worth $33.5 billion to Mexico in 2024, the International Trade Administration said.
According to the most recent data, the Golden State took the No. 2 spot in the United States in terms of exports to Mexico.
Here are the rankings for the top products California exported to Mexico:
Motor vehicle parts: $2.29 billion
Computer equipment: $1.65 billion
Semiconductors and other electronic components: $1.51 billion
Electrical equipment and components: $1.46 billion
Other general purpose machinery: $1.31 billion
Navigational, medical and control instruments: $1.26 billion
Plastics products: $1.21 billion
Other fabricated metal products: $1.14 billion
Clothing: $1.08 billion
Communications equipment: $1.08 billion
How much could tariffs cost Californians?
As a result of proposed Trump tariffs, Californians could see prices rise on all kinds of household goods, financial experts said.
That would “have a profoundly negative impact on working families in California and across the country,” California Gov. Gavin Newsom said in a social media post in December. “Make no mistake: this would be a tax on consumers.”
Californians would also have to pay more in taxes.
A new report by the nonpartisan Tax Foundation discovered that Trump’s tariffs would amount to an average tax increase of more than $800 per U.S. household in 2025.
“We estimate the tariffs on Mexico, Canada and China proposed to go into effect ... would shrink economic output by 0.4% and increase taxes by $1.1 trillion between 2025 and 2034 on a conventional basis,” the Tax Foundation said.
UPDATE: An earlier version of this story included International Trade Administration statistics from 2023. The story has been updated to reflect the latest numbers.
This story was originally published March 4, 2025 at 11:45 AM with the headline "California gets $64 billion in goods from Mexico. How could Trump tariffs hurt consumers?."
