President Donald Trump is following through on his threat to implement severe tariffs on two major allies and neighbors of the United States. The restrictive trade measures against Canada and Mexico and new tariffs against China have sparked retaliation from these countries, all of which are expected to raise significantly the prices of various goods, an expense that Trump seems willing to inflict on the American people.

Trump fulfills tariff threats against Canada, Mexico and China

On Sunday, Trump signed a new executive order imposing 25% tariffs on imported goods from Canada and Mexico and an additional 10% tariff on goods imported from China. Trump had previously threatened to impose tariffs on Mexico and Canada if they did not cooperate with his policies concerning the movement of people and illicit drugs across their shared borders with the U.S. He has also accused both countries of taking advantage of the U.S. economically. Trump has levied similar criticisms against China, arguing, for example, that it supplies Mexican drug gangs with the chemicals used to make fentanyl.

Countries hit U.S. back with tariffs, other measures

Trump’s tariffs, set to take effect Tuesday, have already led to retaliation. China has said it will file a case against the United States in the World Trade Organization and take other countermeasures. Mexico President Claudia Sheinbaum indicated she would have preferred a negotiated settlement to the dispute but that Mexico would implement tariffs against the U.S. as an alternative option.

Canadian Prime Minister Justin Trudeau, set to resign partly because of the political crisis created by Trump’s tactics, announced that in retaliation for Trump’s tariffs, Canada would impose a 25% tariff on American goods, covering $155 billion worth of products.

Trade war will raise prices, hurt consumers

The growing trade war between the United States and other countries is set to impose significant costs on consumers, raising prices of everything from food and alcohol to cars and fuel. Trump has employed the tariff tactic against other countries like Colombia, threatening to impose tariffs on goods from that nation to get it to cooperate with his deportation measures. In a social media post, Trump acknowledged that there may be “some pain” from the tariffs but declared that “it will all be worth the price that must be paid.”

Late Monday morning, news broke that Trump was delaying his imposition of tariffs against Mexico as negotiations continue. The days and weeks ahead will determine whether the U.S. will use harsh trade measures, even in the face of backlash from significant trading partners. While this Trump-made conflict continues, American consumers will be among those paying the most considerable price from the growing trade war.

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