Trump’s Proposed Tariffs Raise Concerns Over Economic Impact in North America

President-elect Trump’s plan for sweeping tariffs on Canada, Mexico, and China poses risks to supply chains, trade agreements, and consumer prices.

President-elect Donald Trump has announced plans for 25% tariffs on all goods from Canada and Mexico and 10% on goods from China, citing issues like migration and drug trafficking as justification.
Experts warn that such tariffs could disrupt deeply integrated North American supply chains, particularly in the automotive, energy, and agricultural sectors, leading to higher consumer prices and inflation in the U.S.
Small businesses in the U.S. are bracing for potential cost increases, with some stockpiling inventory or considering passing costs onto consumers, while others face uncertainty about how to adapt.
Canadian and Mexican officials have criticized the proposals as damaging and are exploring potential retaliatory tariffs, highlighting the strain on trade relationships under the USMCA agreement.
Economists and trade experts suggest the tariffs could lead to a trade war, raising costs across borders and undermining decades of economic integration in North America.