Trump’s Tariffs: Global Reactions and Economic Fallout

U.S. President Donald Trump imposed 25% tariffs on goods from Canada and Mexico and a 10% duty on imports from China, affecting approximately $1.6 trillion in annual trade with these countries. In retaliation, Canadian Prime Minister Justin Trudeau announced 25% tariffs on $155 billion of U.S. goods, with an initial $30 billion set to take effect immediately and additional tariffs on $125 billion to follow in 21 days. Mexico, under President Claudia Sheinbaum, plans to retaliate but has not specified the measures, emphasizing a collaborative approach rather than confrontation. China responded by planning to file a lawsuit with the World Trade Organization and criticized the U.S. tariffs as violations of WTO rules. The European Union expressed regret and warned of a firm response to any future tariffs on its products. Economic analysts predict that the tariffs could trigger a significant global trade war, potentially leading to recessions in Canada and Mexico, and contributing to increased inflation in the U.S.

Source: CNBC