Trump unveils tariffs on Mexico, Canada, and China, escalating trade tensions

President Donald Trump has announced significant tariffs on imports from Mexico, Canada, and China, marking a sharp shift in U.S. trade policy. Effective Tuesday, the new tariffs include a 25% duty on most goods from Mexico and Canada and a 10% levy on Chinese imports.

Trump cited drug trafficking and illegal immigration as key reasons for the tariffs, invoking the International Emergency Economic Powers Act.

In response, Mexico, Canada, and China vowed retaliation. Mexico and Canada will impose tariffs on U.S. goods, while China plans to file a complaint with the WTO. The move risks escalating into a trade war, potentially raising costs for consumers and disrupting global supply chains.

Business groups criticized the tariffs, warning of higher prices and economic harm. U.S. industries, including spirits, agriculture, and electronics, expressed concerns about losing market share and facing cost increases. Economists predict the tariffs will lead to inflation and higher prices for U.S. consumers.

The new measures mark a shift from the U.S.-Mexico-Canada Agreement (USMCA) and deepen ongoing tensions with China. With these tariffs set to impact major trading partners, global markets are bracing for potential economic fallout.