The U.S. Push for Change

On February 1, President Trump imposed a 25% tariff on most imports from Mexico and Canada, and a 10% tax on all imports from China, disrupting trade relations with these major partners. In retaliation, Canada announced a matching 25% tariff on $107 billion worth of American goods, while Mexico pledged similar action. China condemned the move and promised countermeasures. The tariffs aim to curb fentanyl trafficking and migration, a major issue for the U.S. as fentanyl-related deaths surge. However, the tariffs, if permanent, could severely damage the USMCA and economies in North America, particularly Mexico, which could face a recession. While the tariffs have been temporarily delayed for 30 days as border security measures are implemented by Canada and Mexico, analysts warn that prolonged tariffs would likely lead to higher inflation and a reduction in GDP. Despite these risks, Trump’s tariffs may provide a short-term fiscal solution, but they threaten the stability of vital industries across North America, potentially triggering a trade war that could undermine the USMCA, affecting millions of workers and the economies of the three nations.