Trade Wars Escalate as US Tariffs Affect Canada, Mexico, China

President Donald Trump has implemented a 25% tariff on imports from Canada and Mexico, alongside a rise of duties on Chinese goods to 20%, igniting significant trade disputes with these key partners. This move, aimed at combatting drug trafficking, particularly fentanyl, has prompted immediate retaliatory actions; Canada plans to impose 25% tariffs on $30 billion worth of U.S. imports, while Mexico is expected to announce its response shortly. China has retaliated by imposing 10%-15% tariffs on American agricultural products and restricting ten U.S. firms under national security grounds. The escalation of these tariffs is causing market instability, with fears of deepening trade wars leading to a stronger U.S. dollar and a decline in the Canadian dollar. Economists warn that these measures could lead to increased consumer prices and impact U.S. economic growth, complicating Trump's objective of lowering costs for Americans. As tensions rise, global markets are reacting negatively, reflecting concerns about future economic repercussions.