In the first week of President Donald Trump’s administration, he announced plans to raise tariffs from both Canada and Mexico starting Feb. 1 in order to stop migration and drug trafficking into the United States. He signed an executive order Jan. 20th, “America’s First Trade Policy,” that implemented the tariffs — including a 25% tariff on all resources entering the U.S. from both countries. The leaders of Canada and Mexico made their own statements to encourage Trump to rethink his decision.
Concerned with their economy, both countries stated the many resources they provide to the U.S. that are vital to their economy. Mexico President Claundia Sheinbaum told reporters in a BBC article that “if tariffs go up, who will it hurt? General Motors,” and Canada’s Deputy Prime Minister, Chrystia Freeland, said “The things we sell to the United States are the things they really need. We sell them oil, we sell them electricity, we sell them critical minerals and metals.”
If the president decides to pursue these tariffs, Canada and Mexico are prepared to fight back with their own tariffs that will likely cause a downturn to the U.S. economy.
Canada and Mexico are large contributors to U.S. markets, and if taxed, it will have an impact on the U.S. auto industry and energy resources along with many other goods and resources the U.S. needs for economic survival — which is the complete opposite of what Trump has claimed our economy will be once he is back in office.
During the entire campaign, Trump continuously promised to make America affordable for everyone, but as week one ends and tariffs are about to go into action, Americans will realize how his great plan of taxing countries is going to blow up in his face.
Imposing tariffs on Canadian and Mexican imports will have consequences on the American economy. If both countries fight back with economic sanctions of their own, it could result in a tariff war that will only bring problems to the U.S…
Americans should be aware of the poor economic decisions made by their president because it will cause auto parts’ cost to increase along with a higher cost to vegetables and other food imports the U.S. gets from Mexico, meaning grocery prices will not be lowering any time soon.
As Canada and Mexico each decide how to fight back and punish the U.S. for Trump’s efforts to enforce tariffs on their goods and sources, it is important to keep following any updates regarding the situation and stay informed on what is at risk for Americans’ daily lives.