Trade Wars 2025

Bruce News MA, Ed.

Writer, CEO

In a significant escalation of trade tensions, Canada and Mexico have announced retaliatory tariffs in response to U.S. President Donald Trump's recent imposition of duties on their exports. This development marks a deepening rift among the North American allies and raises concerns about potential economic repercussions.

Background on U.S. Tariffs

On February 1, 2025, President Trump signed executive orders imposing a 25% tariff on all goods imported from Mexico and Canada, with a reduced 10% tariff specifically on Canadian energy exports. These measures, set to take effect on February 4, were justified by the administration as necessary to combat illegal immigration and the influx of fentanyl into the United States. Trump cited the International Emergency Economic Powers Act to authorize these tariffs, aiming to incentivize domestic manufacturing and address trade imbalances.

Canada's Response

Canadian Prime Minister Justin Trudeau swiftly condemned the U.S. tariffs, announcing that Canada would implement a 25% tariff on $155 billion worth of American goods. This retaliation is planned in two yphases: an initial set of tariffs effective immediately after the U.S. measures take hold, and a second set targeting additional goods in the following weeks. The targeted U.S. products include liquor, vegetables, clothing, shoes, and perfume, with potential extensions to household appliances, furniture, and sports equipment. Trudeau emphasized the importance of the U.S.-Canada relationship and urged Canadians to consider choosing domestic products over American ones.

Mexico's Response

Mexican President Claudia Sheinbaum also announced plans for retaliatory measures, including both tariff and non-tariff actions against the United States. While specific details were not immediately provided, reports suggest that Mexico is considering tariffs ranging from 5% to 20% on U.S. pork, cheese, produce, steel, and aluminum, with the automotive industry currently exempt. Sheinbaum refuted allegations of Mexican government alliances with drug cartels and proposed collaborative efforts with the U.S. to address shared concerns, emphasizing that issues should be resolved through dialogue rather than punitive tariffs.

Economic Implications

Economists warn that this escalating trade conflict could disrupt supply chains across North America, increase consumer prices, and potentially lead to economic slowdowns in all involved countries. The tariffs are expected to have significant impacts on various industries, including agriculture, manufacturing, and retail, with consumers likely facing higher prices for a range of goods. Financial markets have already shown signs of volatility in response to these developments, reflecting investor concerns about the broader economic impact.

International Reactions

The trade dispute has also drawn reactions from other global players. China, for instance, has accused the U.S. of violating World Trade Organization rules and announced plans to file a complaint while preparing corresponding countermeasures. This indicates a potential broadening of trade tensions beyond North America, with implications for global trade dynamics.

Conclusion

Donald Trump is trying to stop illegal immigrants from entering the country through the North and South. There is a lot at stake. Trump is doing this for three huge reasons.

1. To stop illegal aliens from entering the USA.

2. To stop the crime that the illegals bring with them (Murder, Rape, Fentanyl, etc.)

3. To attain a fair deal with these countries.

The US has been paying very high tariffs and Canada / Mexico pay very low tariffs. It may be painful to start because there may be some inflation but at the end of the day Mexico and Canada are not stable financially and I think they will have to give in and stop the illegals before they come in. The unfolding trade dispute between the United States, Canada, and Mexico represents a significant challenge to long-standing economic relationships in North America. As each country implements tariffs and countermeasures, the potential for economic disruption grows, underscoring the need for diplomatic engagement to resolve these tensions and mitigate adverse effects on businesses and consumers alike.

Pray, Vote and Be Active! Bruce

Peter M. Katz - Executive Editor