Overview
- Donald Trump has imposed 25% tariffs on all goods from Canada and Mexico, excluding Canadian hydrocarbons taxed at 10%, and added 10% tariffs on additional Chinese imports.
- The tariffs, which take effect Tuesday, target over $1.4 trillion in imports from the U.S.'s top trade partners, significantly expanding duties compared to Trump's first term.
- Canadian Prime Minister Justin Trudeau announced retaliatory tariffs of 25% on U.S. goods valued at 155 billion Canadian dollars, starting with an initial tranche of $30 billion on Tuesday.
- Trump acknowledged for the first time that American consumers and businesses might face economic challenges from the tariffs but framed them as necessary for restoring U.S. economic strength.
- Canada, Mexico, and China have signaled plans to challenge the tariffs through legal mechanisms, including the WTO and trade agreements, while Mexico has also hinted at retaliatory measures.