Former U.S. President Donald Trump is set to introduce new tariffs on major trading partners, with Canada, Mexico, and China in the crosshairs. The U.S. government has informed Ottawa that a 25% tariff will take effect on Canadian exports starting Tuesday, except for energy products, which will face a 10% duty, according to a Canadian official.
Thank you for reading this post, don't forget to subscribe!Trump is also pushing for a 25% tariff on Mexican imports, citing North American neighbors’ failure to curb illegal immigration and fentanyl trafficking. Meanwhile, China will face a 10% tariff, with Trump accusing Beijing of playing a role in the production of synthetic opioids.
These measures are expected to disrupt supply chains across multiple industries, including energy, automotive, and agriculture. Economists warn that the tariffs could drive up consumer prices and business costs. Gregory Daco, chief economist at EY, predicts inflation could rise by 0.7 percentage points in the first quarter before stabilizing.
Canadian Prime Minister Justin Trudeau is set to address the issue in a press conference, vowing a “purposeful, forceful” response. Ontario Premier Doug Ford warned of immediate job losses and economic slowdowns, calling for Canada to “hit back hard.” Mexico’s President Claudia Sheinbaum has taken a more measured approach, stating her administration is prepared for any outcome.
The tariffs could significantly impact the energy sector, as Canada supplies nearly 60% of U.S. crude oil imports. Analysts suggest that U.S. refiners reliant on Canadian heavy oil may struggle to find alternatives, leading to potential price hikes.
Despite growing concerns, the White House has dismissed fears of a trade war. However, Trump’s latest move signals potential economic volatility, with the former president indicating that additional tariffs on the EU and other industries—including semiconductors, steel, and aluminum—may be on the horizon.
