Trump's Tariff Tactics: Risky Moves on Trade Front

US President Donald Trump is set to impose tariffs on Canada, Mexico, and China, effective Saturday. These measures aim to bolster domestic manufacturing and address illegal immigration, despite posing significant economic and political risks. Responses from affected countries could escalate into a broader trade conflict.

US President Donald Trump announced plans to implement tariffs on imports from Canada, Mexico, and China, effective from Saturday. This move, intended to bolster domestic manufacturing and combat illegal immigration and substance smuggling, poses significant economic and political risks.

The tariffs, 25 per cent on Canadian and Mexican imports and 10 per cent on Chinese goods, could lead to swift price hikes for US consumers. Despite the potential exemptions for oil imports, both Canada and Mexico have prepared retaliatory measures, which could spark a broader trade conflict.

Canadian Prime Minister Justin Trudeau expressed readiness to respond to the tariffs, citing potential economic harm to both countries. Meanwhile, Mexican President Claudia Sheinbaum emphasized ongoing dialogue with the US and her commitment to defending Mexico's sovereignty.

(With inputs from agencies.)