What Trump’s latest tariffs on Canada, China, and Mexico mean and how they could have major consequences
Topics: Donald Trump, Money, News, Politics, US News, World News
Rhiannon Ingle
Featured Image Credit: Andrew Harnik/Getty Images
Topics: Donald Trump, Money, News, Politics, US News, World News
Donald Trump was sworn in as the 47th president of the United States a little over a month ago (20 January), and he's since made a flurry of changes to domestic, foreign, and economic policy.
Halting aid to Ukraine after an extremely heated row with President Zelenskyy, renaming the Gulf of Mexico to the Gulf of America, banning gender transitions for people under 19, and ending birthright citizenship are just some of the many things the 78-year-old Republican has done since coming into power for his second time.
And the latest news from the White House sees Trump, who is the first convicted felon to assume the presidency, impose new tariffs on Canada, China, and Mexico.
US tariffs - which are are taxes charged on goods imported from other countries - of 25 percent have now come into force against goods hailing from both Canada and Mexico - both countries of which are the States' two biggest trading partners.
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This will impact over a staggering $918 billion (£722 billion) worth of US imports from Canada and Mexico.
And, as for Chinese goods, a 20 percent tariff has come into effect, which is doubling the levy on China from last month.
So, for example, imposing a 20 percent tariff on Chinese goods means that a product worth $10 would have an additional $2 charge applied to it.
According to the Peterson Institute for International Economics, a thinktank that estimated Trump's move would cost the typical US household upwards of $1,200 each year, the tariffs amount to 'the largest tax increase in at least a generation'.
Goods from the above three countries accounted for more than 40 percent of imports into the US in 2024.
Earlier this week on Monday (3 March), Trump told reporters at the White House that there was 'no room left for Mexico or for Canada', adding: "The tariffs, they’re all set. They go into effect tomorrow."
Trump and his allies have stated that higher tariffs on US imports from across the globe will help 'make America great again' by enabling the country to gain political and economic concessions from allies and rivals on the world stage.
When he first announced plans for new tariffs, the White House said Trump was 'taking bold action to hold [the three countries] accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country'.
Both Canada and China have already retaliated against Trump's latest tariffs, with tariffs of their own against US goods which have, in turn, triggered concern of a global trade war and higher prices.
"China opposes this move and will do what is necessary to firmly safeguard its legitimate interests," a Chinese foreign ministry spokesperson, Lin Jian, said.
"If the United States … persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end."
China’s finance ministry added: "The US' unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US."
Canadian prime minister, Justin Trudeau, warned: "Tariffs will disrupt an incredibly successful trading relationship."
And Mexican president, Claudia Sheinbaum, said there was no justification for Trump’s tariffs, stating her government would respond with tariff and non-tariff measures.