Trump’s Tariffs and Federal Cuts Shake U.S. Economy and Global Relations

Economic uncertainty grows as President Trump delays tariffs on Canada and Mexico and implements sweeping federal workforce reductions.

President Trump has delayed the enforcement of 25% tariffs on Canadian and Mexican goods for another month, citing ongoing negotiations with both nations.
The tariff policy has caused economic strain, including increased consumer prices, market volatility, and strained relations with key trade partners like Canada, Mexico, and China.
The Department of Government Efficiency, led by Elon Musk, has initiated mass federal layoffs, sparking legal challenges and public backlash over its methods and scope.
Economists warn that the tariffs and federal cuts could lead to significant job losses, reduced GDP growth, and declining consumer confidence in the U.S.
China, Canada, and Mexico have retaliated with tariffs on U.S. goods, with Canadian officials and businesses responding strongly to what they see as economic aggression.