US President Donald Trump has imposed sweeping tariffs on Canada, Mexico, and China, sparking widespread criticism from lawmakers, economists, and business groups. The move aims to combat fentanyl smuggling and illegal immigration but is expected to have far-reaching consequences for the global economy.
Under the executive orders, Canadian energy products will face a 10% tariff, while all other goods imported from Canada will be subject to a 25% duty. Similar tariffs are in place for Mexico, with some exceptions. China will also face a 10% tariff on its imports.
Canada and Mexico have vowed to retaliate swiftly with their own tariffs, which could lead to a trade war between the three countries. China has warned of “countermeasures” to safeguard its interests.
Economists warn that the tariffs could lead to slower economic growth, higher inflation, and even cripple American industries. The uncertainty surrounding Trump’s use of national security laws to justify the tariffs has raised concerns among international partners and critics who argue it undermines free trade agreements.
The move is seen as a significant departure from Trump’s previous stance on trade, where he had pushed for a rewrite of the North American Free Trade Agreement. The United States-Mexico-Canada Agreement signed by Trump has not been met, with China still failing to fulfill its commitments under their trade deal.
Industry groups have urged caution, warning that tariffs will harm American workers and businesses, particularly in sectors such as spirits, cars, and farm products. Agricultural interests are also concerned about the impact of tariffs on their livelihoods.
The move is likely to be met with skepticism from many Republicans, who traditionally oppose tariffs. However, some lawmakers have expressed support for the policy, citing concerns over border security and fentanyl smuggling.
As the implementation of these tariffs unfolds, it remains unclear how they will affect the US economy and global trade landscape.
Source: https://www.nytimes.com/2025/02/02/us/politics/trump-tariffs-global-economic-order.html