U.S. President Donald Trump has announced plans to impose tariffs on Canada and Mexico starting March 4, while also doubling existing 10% tariffs on Chinese imports, a move that is already causing economic uncertainty and raising concerns about rising inflation.
In a post on Truth Social, Trump cited illicit drug trafficking, particularly fentanyl, as the reason for the new tariffs, claiming that the import taxes would pressure foreign governments to take stronger action against smuggling.
“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump wrote. “China will likewise be charged an additional 10% Tariff on that date.”
The announcement has sparked concern among economists and industry leaders, as Canada and Mexico are America’s two largest trading partners. The auto industry, in particular, is expected to face supply chain disruptions, which could lead to higher consumer prices and slower economic growth.
These tariffs also add to the ongoing trade tensions between the U.S. and China, with businesses already feeling the strain of increased costs and uncertainty in global markets.
As the global economy reacts, analysts warn that the tariffs could lead to political and economic backlash, with consumers worried about rising inflation and trade partners considering retaliatory measures.