U.S. Faces Trade War Risks with New Tariffs

On President Trump’s first day in office, he signed an executive order to impose 25% tariffs on all imports from Canada and Mexico. Said tariffs went into effect February 1, 2025. In theory, the President’s goal is to promote American industries and exports by discouraging outsourcing to Canada. Radical protectionism many times will raise the cost of living and harm American consumers. It is a risky game to play because oftentimes tariffs will backfire and lead to what is sometimes referred to as a trade war. Canada is already imposing retaliatory tariffs on the United States. Economic tensions are on the rise between these two nations. Consumers will be the ones to pay for it, with price increases and counter-tariffs that will make goods less affordable. President Trump has let it be known that he intends to use these tariffs to negotiate in the United States’ favor. Canada is already suggesting ways to call off the tariffs. President Trump is giving Canada a 30-day ultimatum to stop the potential trade war.

Prime Minister Trudeau promised to do his best to comply with the United States’ requests to secure the border and stop the flow of fentanyl
through the border. Canada Public Safety Minister David McGuinty had this to say, “The goal is to stop fentanyl and precursors from coming into our country or being made in this country, keeping in mind less than one percent of fentanyl going to the U.S. is coming from Canada,” McGuinty said. “Our goal today and our goal tomorrow is no tariffs.” From the looks of it, neither Canada nor the United States wants this trade war to escalate further and Canada’s willingness to comply is a promising sign that it won’t. We can hope for the leaders of our country to negotiate a deal and that it will minimally affect consumers and cost of living.