Trump's Tariff Threats: The High-Stakes Game with NAFTA Allies

President Trump is considering imposing tariffs on Canada and Mexico, despite potential economic risks and opposition. Economists warn that such a move could lead to inflation and a slowdown in growth. Canada and Mexico prepare to retaliate if necessary, highlighting the tense trade relations.

The Trump administration is contemplating implementing new tariffs on Canada and Mexico, heightening tensions with these key trade partners. The move comes after previously coercing Colombia to accept deportees by threatening hefty import taxes.

Economists are skeptical of the strategy, fearing it could spur inflation and hamper economic growth. Canada's strategy is to brace for Trump's unpredictability, and Mexico is advocating dialogue while acknowledging some progress in addressing drug issues.

Concerns center on how tariffs could inflate costs in sectors reliant on imports from these countries, particularly the oil and automotive industries. Despite these worries, President Trump remains steadfast in using tariffs as a shield against competition and a catalyst for immigration policy changes.

(With inputs from agencies.)