Trump opens tariff hell: consequences for Mexico, Canada and China!

Trump opens tariff hell: consequences for Mexico, Canada and China!

The trade conflicts are escalating: US President Donald Trump is sending a clear message and imposing drastic tariffs on goods from Mexico, Canada and China. As the White House announced, all imported products from China will face an additional rate of ten percent, while imports from Mexico and Canada will be charged a whopping 25 percent. These measures, which took effect on February 1, 2025, aim to better protect the United States from trade imbalances and illegal immigration. Nevertheless, the possible consequences are far-reaching.

While Trump ordered these measures on the Truth Social platform, the immediate reactions from the affected countries did not come out of the blue. Mexico and Canada have already threatened to respond with their own tariffs, which could have a dramatic impact on trade relations between the countries. How tagesschau.de reported, this could hurt both economies since over 80 percent of Mexico's exports go to the United States. The auto industry is particularly in focus here, as many European companies rely on production facilities in Mexico - including big names such as VW, Audi and BMW. Experts warn that the new tariffs could significantly jeopardize the profitability of these companies.

Reactions and impending trade wars

The Chinese economy will also be severely affected as the US market is of utmost importance to many Chinese companies. Loud vienna.at Beijing expects increased price pressures for American consumers and is already considering retaliatory measures to put pressure on the US economy. The new tariffs could also further strain US-EU relations, as Trump has said European products could also be subject to tariffs to combat the trade deficit. The EU Commission has already warned of the major economic disruptions and the possible increase in inflation that this tariff policy will bring with it.

To enforce these far-reaching measures, Trump has declared a national emergency, which gives him the ability to act immediately and without exception. Experts predict job losses and continued economic uncertainty in both the United States and neighboring countries. The immediate economic consequences of this tariff policy are expected over the next few months as the affected countries try to compete in this new trading environment.