President Trump’s 25% tariffs on goods from Canada and Mexico took effect Tuesday after negotiations on fentanyl smuggling and migration failed to satisfy the administration. Energy products like crude oil and natural gas will face a 10% tariff. In response, Canada announced retaliatory tariffs on nearly $100 billion of U.S. goods, while Mexico is preparing its own measures.
The move has unsettled U.S. automakers, who fear disruptions to North American supply chains. Unlike past negotiations, Commerce Secretary Howard Lutnick offered no assurances of exemptions under the U.S.-Mexico-Canada Agreement (USMCA), leaving car manufacturers uncertain.
Meanwhile, additional tariffs on Chinese imports have also increased by 10%, intensifying trade tensions. China has vowed countermeasures, while analysts warn of potential inflationary impacts.
As these tariffs take hold, businesses are bracing for economic ripple effects, from rising costs to potential job losses. The retail industry, already navigating supply chain challenges, could see higher prices passed on to consumers.
With Canada and Mexico responding in kind, and China weighing its next move, the coming months could determine whether these tariffs escalate into a broader trade conflict or lead to renewed negotiations.
