International trade circles are experiencing severe shockwaves because President Donald Trump escalated his trade conflicts against major U.S. partners through new executive orders.
President Donald Trump implemented executive orders on February 1, 2025 which placed heavy tariffs at 25% for Mexican and Canadian products and 10% for Chinese imports.
The tariff rate for Canadian oil and gas resources amounts to 10%. The new measures will start coming into force on February 4 2025.
The administration adopts these tariffs because they aim to enforce promised actions from these foreign governments regarding illegal immigration control and fentanyl border entry restrictions.
The White House reported that Canadian authorities observe increasing fentanyl production and seized enough fentanyl at their northern border in the previous year to be lethal for 9.8 million Americans.
United States officials reported excessive illegal border crossings from Canada have become the highest they have been during the past four years.
The continuing increase in illegal border crossings from Canada has served as a catalyst for Trump to escalate American foreign policies against its neighbors who are closest to America.
Canadian Prime Minister Justin Trudeau established countermeasures that involved imposing a 25% tariff on worth $155 billion American goods.
The prime minister stressed that such trade measures would result in concrete unfavorable impacts for the American population and predicted that they would produce more discord than national solidarity.
Trudeau demonstrated that trade barriers will bring no positive outcomes to either country and may create economic problems for businesses based in both America and Canada.
Mexican President Claudia Sheinbaum strongly denied U.S. claims of criminal organization alliances by dismissing the U.S. tariffs.
According to the President she has created steps named Plan A Plan B and Plan C specifically based on how the United States government decides.
Although Mexico has expressed readiness to react through countermeasures they have not detailed specific actions.
The escalating trade tensions pose risks for economic downturns according to expert economists who also predict higher consumer prices.
The upcoming tariffs will cause consumer prices to rise because importers will transfer their increased costs to buyers for food items and gasoline products as well as automobiles and electronic devices.
Various experts predict these current tariffs will generate broader market impacts that will extend outside North American waters.
The rising trade tensions have forced businesses located in both the border countries to urgently adjust their operations to suit the new economic situation.
During the intense trade conflict President Trump suggested an unpopular measure to let Canada evade these metal tariffs.
Through a Truth Social post he indicated that Canada must become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!”
(Credit: @justinpjtrudeau/Instagram)
Microsoft President Brad Smith proposed joining the United States as its 51st state which created extensive argument among people while deepening ongoing trade tensions with Canada.
The global community continues its close monitoring because additional economic and political impacts are expected to occur.
Feature Image Credit: @justinpjtrudeau/Instagram