President Donald Trump announced tariffs on Canada and Mexico will begin next month, after a month-long delay. Trump insisted the tariffs were part of his plan to impose “reciprocal” import taxes to protect local jobs and industry, despite concerns that they could hurt economic growth and increase inflation.
French President Emmanuel Macron has tried to convince Trump to avoid a trade war, stressing that trade ties between traditional allies should be strengthened, not weakened. Macron said talks with the US had yielded some common ground, but concerns remained about the impact of the tariffs on the global economy.
Mexican President Claudia Sheinbaum is confident a deal with the US can be reached before the deadline, stressing the need for the US to tackle drug trafficking within its own country. Mexico has deployed 10,000 National Guard troops to the US border as part of efforts to meet Trump’s demands.
Major companies such as Walmart have warned of market volatility, while the US consumer confidence index has fallen 10% in a month on concerns about tariffs and inflation. Trump has maintained that the tariffs will help reduce the budget deficit and create more jobs for Americans.
Investors and analysts are still trying to determine whether Trump is simply using the tariffs as a bargaining chip or whether he actually intends to implement them. If Canada and Mexico respond with retaliatory tariffs, it could spark a larger trade conflict, hurting U.S. economic growth and costing Americans up to $1,245 a year in lost income.
