US President Donald Trump’s administration has implemented large tariffs on imports from Canada, Mexico, and China, sparking fears of a global trade war. The tariffs, signed into effect on February 1st, impose 25% on imports from both Canada and Mexico, and 10% on imports from China. This move is expected to drive up prices, weigh on growth, and sow uncertainty for businesses.
While Trump had vowed to take this action, the timing and scale of the tariffs still come as a shock to the global economy. The president’s aggressive stance on trade has raised concerns about a broader conflict that could impact global markets.
Trump has threatened to expand his economic warfare beyond just tariffs, potentially targeting the global tax system. This move has sparked fears among allies that they may not be able to stop him from reshaping international economic relationships.
Source: https://www.economist.com/finance-and-economics/2025/02/02/trumps-brutal-tariffs-far-outstrip-any-he-has-imposed-before