Trump’s Tariffs Spark Global Trade War with Canada, Mexico, and China
US President Donald Trump has imposed new 25% tariffs on imports from Mexico and Canada, alongside a tariff increase on Chinese goods to 20%, igniting fresh trade conflicts with the country’s top trading partners.
The new tariffs, effective Tuesday, impact nearly $2.2 trillion in annual trade and were justified by Trump as a response to insufficient efforts by these nations to curb fentanyl trafficking into the US.
Canada and Mexico, long-time US allies with historically tariff-free trade, have vowed swift retaliation. Canadian Prime Minister Justin Trudeau announced immediate 25% tariffs on $20.7 billion worth of US goods, with further increases if Trump’s measures remain in place. Mexico is set to unveil its countermeasures soon.
China, already entangled in ongoing tariff disputes, faces an additional 10% duty on top of earlier levies, bringing some tariffs to 20%. The new measures also target previously unaffected US consumer electronics imports, such as smartphones and laptops. In response, China has announced new tariffs on American agricultural goods and plans to file a WTO lawsuit.
The escalating trade tensions have shaken financial markets, with global stocks tumbling and the Canadian dollar and Mexican peso losing value against the US dollar. Critics warn that these tariffs could disrupt supply chains, increase consumer costs, and push North America toward economic recession.
