Trump’s Tariff Tango: Economic Risks Loom as Trade Tensions Rise

President Trump implements tariffs on imports from Canada, Mexico, and China. These tariffs are aimed at curbing illegal immigration and boosting US manufacturing. However, they carry economic and political risks, potentially affecting prices and triggering retaliatory measures from Canada and Mexico.

President Donald Trump is set to impose 25% tariffs on imports from Canada and Mexico and 10% on goods from China, effective Saturday. The White House has not disclosed any exemptions, raising concerns about potential price hikes for American consumers.

The tariffs are part of Trump's strategy to enhance domestic manufacturing and curb illegal immigration and fentanyl smuggling. However, these actions present both political and economic risks as Trump begins his second term, potentially affecting sectors like energy, auto, and agriculture.

While Trump considers oil import exemptions, Canada and Mexico have prepared retaliatory tariffs. Canadian Prime Minister Justin Trudeau promises a strong response if tariffs proceed, warning of economic fallout. Meanwhile, Mexican President Claudia Sheinbaum emphasizes defending sovereignty and maintaining dialogue.

(With inputs from agencies.)