In a major reversal by the former President, Donald Trump announced that a 25% tariff on any goods from Canada and Mexico would be in place by next month. The move, after a short postponement, has rocked international markets and raised fears of an economic fringe and world trade.
Trump’s Tariff Policy: What Is Changing?
Speaking at a press conference with French President Emmanuel Macron, Trump confirmed that the new tariffs will take effect immediately after March 4.
- Canada and Mexico were given additional time to strengthen their borders.
- Trump also made the case that the U.S. deserves fairer trade deals with its partners.
- He said similar tariffs on China and India might follow.
“If they charge us, we’ll charge them back the same.” It’s only fair,” Trump said, echoing his belief in reciprocity in trade.
How Canada & Mexico Are Reacting
Mexico’s Reaction
Claudia Sheinbaum, Mexico’s president, hopes the two sides can resolve before the tariffs go into effect. She told 8 that negotiations were continuing and that she would be willing to meet directly with Trump if needed.
- Mexico has sent 10,000 National Guard troops to its northern border.
- The move is intended to combat illegal immigration and drug smuggling, two top priorities for Trump.
Canada’s Countermeasures
Canada has already said it will retaliate if the tariffs are invoked.
- The government has allocated $900M to border security.
- One task force is dedicated to curbing fentanyl traffickers.
- Canada is contemplating tariffs on American goods as a counter.
Energy exports such as oil and electricity will be subject to a severely lower 10 percent tax, but most other Canadian exports will jump in price significantly.
Trump Surfaced Steel & Aluminum Tariffs
This week, he lifted tariff exemptions on imports of steel and aluminum from Canada and Mexico, which trade policy observers are perplexed about. The latest turn in tariffs is widely interpreted as an extension of that aggressive approach aimed at demonstrating Trump’s willingness to protect American industries.
Markets Plunge as Tariff Announcement Disrupts Crypto
Trump’s trade policy is not only affecting traditional markets — it’s having a ripple effect on the crypto space, too.
- The global crypto market cap lost 7.91% in the $2.88 trillion region.
- Bitcoin (BTC) fell 7.23%, changing hands at $89,026.90.
- Ethereum (ETH) followed closely behind with an 11.36% drop to $2,936.73.
- The biggest loser was Solana (SOL), which plummeted 15.35% down to $135.20.
What is Next?
As tensions grow between the U.S., Canada, and Mexico, investors are preparing for possible economic shifts. Over the coming weeks, we’ll find out whether:
- Trump’s tariffs on China and India have widened, inflaming worldwide trade wars.
- The crypto market recovers, or further sell-off continues.
Global markets are hanging on every word, and the stakes have never been higher. Will these tariffs transform U.S. trade or create new economic uncertainty? Stay tuned0.
With a passion for healthy living, Michael shares insightful articles, delicious recipes, and practical tips to nourish your body and mind.
