US President Donald Trump on Saturday ordered significant tariffs on goods from Mexico, Canada, and China, citing the need to curb the flow of fentanyl and illegal immigration. The tariffs, which are set to begin on Tuesday, include a 25% levy on imports from Mexico and Canada and a 10% tariff on Chinese goods. These actions mark the start of a potential trade war that could impact global growth and fuel inflation.
Both Mexico and Canada swiftly announced plans to impose retaliatory tariffs, with Canada targeting $155 billion of US goods. Mexico also indicated it would respond, although specific details were not provided. China, in turn, said it would challenge the tariffs at the World Trade Organization (WTO) and consider other countermeasures.
Trump’s move follows his campaign promises to address the fentanyl crisis and illegal immigration, but it has raised concerns among economists, businesses, and lawmakers. Critics argue that these tariffs could harm industries such as automotive manufacturing, which heavily relies on cross-border supply chains, and increase costs for consumers.
Canadian Prime Minister Justin Trudeau warned that US citizens would face higher costs for groceries and gas, while also highlighting the potential shutdown of auto plants. In Mexico, President Claudia Sheinbaum also vowed to retaliate, and Canadian officials expressed strong opposition to the move.
The tariffs will affect a wide range of goods, including energy products, and will be in place until the US considers the issues of fentanyl trafficking and illegal immigration to be resolved. White House officials emphasized that the tariffs would remain unless conditions were met, but they did not provide clear criteria for when the situation might be deemed satisfactory.
Economists predict that these measures could push the US into a period of “stagflation,” characterized by economic stagnation and rising inflation, while possibly pushing both Mexico and Canada into recession. Stock markets reacted negatively to the news, with the Mexican peso and Canadian dollar falling, and US stock prices experiencing a decline.
Trump’s decision to implement these tariffs underscores his “America First” policy, but it has sparked widespread debate about their potential long-term economic impact. The tariffs are part of a broader strategy that may extend to other sectors like steel, aluminum, and pharmaceuticals.
