president Donald trump announced new and strict tariffs on Mexico, Canada, and china—marking a key move in his long-promised economic policy. this policy, signed at his mar-a-Lago club on Saturday, is aimed at curbing the flow of drugs and undocumented immigrants. however, it could lead to a sharp rise in prices for American consumers, affecting everyday goods like avocados, sneakers, and cars.
a few hours later, mexican president claudia sheinbaum announced retaliatory tariffs, while canadian prime minister justin trudeau spoke about imposing “far-reaching” levies. china’s commerce ministry also stated that it would file a complaint with the world trade organization and take “corresponding countermeasures,” though it did not provide specific details.
these tariffs, along with the retaliatory taxes imposed in response, could trigger a trade war, posing a risk not only to the economies of the targeted countries but also to the united states itself. keeping this possibility in mind, trump’s executive action includes a clause that grants the president the authority to expand tariffs further if any country imposes new tariffs on the U.S.