US President Donald Trump has announced plans to impose new tariffs on Canada and Mexico starting March 4, while also doubling the existing 10% tariffs on Chinese imports. The move is seen as a strategic push to bolster American manufacturing and reduce trade imbalances.
The tariffs on Canada and Mexico will affect a range of products, including automotive components, steel, and agricultural goods. Experts believe this decision could strain trade relations within the US-Mexico-Canada Agreement (USMCA) framework.
Trump’s plan to increase tariffs on China to 20% targets electronics, machinery, and textiles. The move is expected to impact global supply chains, with businesses likely to face increased costs.
Speaking at a recent rally, Trump emphasised the need to prioritise American jobs and industries. “We are taking strong action to ensure that American workers are not undercut by unfair trade practices,” he stated.
Analysts warn that the tariffs could trigger retaliatory measures from trading partners, potentially escalating trade tensions. Meanwhile, markets have responded with caution, as businesses assess the potential impact on pricing and competitiveness.
The White House has yet to comment on the proposed tariffs, but experts expect further clarity as the March 4 deadline approaches.
The business community remains divided, with some welcoming the protectionist measures and others fearing economic disruptions. As the situation develops, industries reliant on international trade are bracing for potential challenges ahead.
