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President Donald Trump announced sweeping tariffs targeting key U.S. trade partners on Saturday, imposing a 25% levy on goods from Mexico and Canada and a 10% duty on Chinese imports, a move critics warn could reignite global trade wars and strain diplomatic relations.
The decision, framed by the White House as a response to cross-border fentanyl trafficking and migration concerns, has drawn swift backlash from affected nations and fears of economic fallout.
In a Friday briefing, White House Press Secretary Karoline Leavitt justified the tariffs on Mexico and Canada as retaliation for their alleged failure to curb the flow of “illegal fentanyl” into the U.S., which she claimed has “killed tens of millions of Americans.” Trump separately accused both nations of exacerbating undocumented migration and trade imbalances. While the 25% tariffs take immediate effect, the president signaled a delayed 10% levy on Canadian oil, set for February 18, citing ongoing negotiations.
The announcement marks a sharp escalation in Trump’s protectionist agenda, reviving tactics from his first term when he imposed tariffs on over $300 billion in Chinese goods. Though Trump campaigned on threats to hike Chinese tariffs to 60%, his administration paused immediate action, opting instead for a review. The latest measures risk destabilizing fragile economic ties: China, Canada, and Mexico collectively account for 40% of U.S. goods imports, and retaliatory measures appear imminent.
Canadian Prime Minister Justin Trudeau warned of a proportional response, stating, “It’s not what we want, but if he moves forward, we will also act.” Mexico has similarly vowed countermeasures, though both nations emphasized efforts to address U.S. border security concerns. China, meanwhile, struck a cautious tone. Vice Premier Ding Xuexiang, speaking at the World Economic Forum in Davos, urged cooperation over “protectionism” and called for “win-win” trade solutions—a veiled critique of Trump’s approach.
Economists and industry leaders fear the tariffs will backfire, driving up U.S. consumer prices and undermining Trump’s pledge to reduce living costs. Approximately 40% of crude oil processed in U.S. refineries is imported, mostly from Canada. Tariffs on energy imports could ripple through supply chains, raising costs for gasoline, groceries, and manufactured goods. Even Trump acknowledged the short-term pain, conceding Friday that tariffs “are sometimes passed along to consumers.”
Mark Carney, former Bank of England and Bank of Canada governor, condemned the move as “damaging to U.S. credibility” and inflationary. “They’re going to hit economic growth,” he told BBC Newsnight, adding that the measures could weaken global trust in U.S. trade policy. Carney, a potential successor to Trudeau as Liberal Party leader, underscored the risk of a domino effect: “This isn’t just about tariffs—it’s about destabilizing the rules-based trading system.”
The tariffs also risk complicating efforts to address the fentanyl crisis. While the White House links the levies to curbing drug trafficking, experts argue that targeting legal trade channels ignores the role of illicit networks and could hinder cross-border cooperation.
As tensions mount, the European Union braces for its own showdown. Trump hinted at future tariffs on the bloc, accusing it of unfair trade practices. For now, the immediate focus remains on North America and China, where the specter of a full-blown trade war looms. With $2.5 trillion in annual trade between the U.S. and its three largest partners at stake, the world is watching—and bracing for what comes next.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/trump-slaps-new-tariffs-on-mexico-canada-and-china-sparking-global-trade-tensions/
