Overview

• The U.S. enacted 25% tariffs on imports from Canada and Mexico and increased duties on some Chinese goods, marking the highest tariff levels since the 1940s.
• Canada, Mexico, and China announced retaliatory tariffs, escalating tensions and raising concerns about the global trade landscape.
• Experts warn the tariffs could slow U.S. economic growth by over 1 percentage point and increase inflation by 0.6 percentage points within a year if sustained.
• American businesses, including automakers and small enterprises, face rising costs and uncertainty, with potential profit losses and higher consumer prices on goods like cars, food, and steel.
• Commerce Secretary Howard Lutnick suggested a possible compromise with Canada and Mexico could be announced soon, though no pause on tariffs is expected.