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| During his first term, President Trump signed a free trade agreement with Canada and Mexico, the United States' two largest trading partners. Today, President Trump nailed these countries with steep tariffs, and they responded in kind. |
The President announced tariffs on imports from Canada, Mexico and China today, of 25%, 25% and 10% respectively. An exception was made for energy from Canada, which will have a 10% duty. A fact sheet available on the White House website states that these are being charged because the countries are not doing enough to stop the flow of fentanyl and other drugs into the United States. The fact sheet also cites the trade deficits with these nations. The website quoted Trump's previous statement about the tariffs: "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country."
Canadian Prime Minister Justin Trudeau announced retaliatory tariffs of 25% on a majority of American exports to Canada. He delayed most tariffs for 3 weeks to give Canadian businesses time to rearrange their supply chains. Mexico's President Claudia Sheinbaum also announced retaliatory tariffs as well as other non-tariff penalties for the United States.
China took a milder approach, and has promised to sue the United States over the tariffs.
Mexico and Canada are the largest trade partners for the United States, with hundreds of billions of dollars in products per year, crossing back and forth across the borders. It's important to remember that these are businesses, and not governments, selling products, and these tariffs may hurt both the Mexican and Canadian economies individually, with each nation exporting over $300 billion in products to the United States annually, the United States exports over $600 billion to these two nations combined annually. Consequently, in terms of dollar amounts, the United States stands to lose much more business than either of those two nations.
Industries that could see profound effects include meat, fruits and vegetables, grains, building lumber, steel, and oil. All of these things make the United States tick, and keep our historical levels of consumerism moving. Raising prices in these areas hurts not only businesses, but also consumers.
Mexico is important to the United States' food supply, providing 1/3 of the total agricultural products used in the United States.
Mexico Exports to United States - 2025 Data 2026 Forecast 1990-2022 Historical
United States Exports to Mexico - 2025 Data 2026 Forecast 1991-2023 Historical
Mexico Is Top Exporter to US: Growth Outlook | BCG
Canada Exports to United States - 2025 Data 2026 Forecast 1989-2023 Historical
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