Trump Initiates Trade War with Tariffs on Mexico, Canada, and China
BUSINESSVIRAL


Trump Initiates Trade War with Tariffs on Mexico, Canada, and China
US President Donald Trump has ordered sweeping tariffs on goods from Mexico, Canada, and China, sparking a trade war that could impact global growth and fuel inflation. The tariffs were imposed in a bid to halt the flow of fentanyl and illegal immigration into the United States, with Trump demanding that the countries address these issues.
Trump's executive orders have set 25% tariffs on most imports from Mexico and Canada and 10% on goods from China, starting Tuesday. He has stated that the tariffs will remain until the national emergency related to fentanyl and illegal immigration is resolved, but no specific criteria were provided for lifting the tariffs.
Mexico and Canada, two of the US's largest trading partners, immediately announced retaliatory tariffs. Canadian Prime Minister Justin Trudeau vowed to impose 25% tariffs on $155 billion of US goods, including beer, wine, and appliances, while Mexico's President Claudia Sheinbaum also confirmed retaliatory tariffs but provided no details.
China has expressed its intent to challenge the tariffs at the World Trade Organization and warned of countermeasures. The Chinese government hopes that the US will approach the issue of fentanyl and other concerns with objectivity and engage in constructive dialogue.
The tariffs are expected to severely affect industries, especially automakers, due to new steep tariffs on vehicles built in Canada and Mexico, potentially disrupting a vast regional supply chain. Trade experts have warned that the new tariffs could erode US and global growth, while raising prices for consumers and companies.
US companies and political leaders have expressed concerns over the impact of these tariffs on the economy, with predictions of rising costs for goods such as avocados and automobiles. However, Republicans have generally welcomed the move, seeing it as a fulfillment of Trump’s campaign promises.
The situation is expected to create volatility in financial markets, as seen in the sharp declines in the Mexican peso and Canadian dollar following Trump's announcement. Some economists predict that the tariffs could lead to a significant economic slowdown in the US, Canada, and Mexico, potentially triggering stagflation.