On February 1, 2025, Trump announced a 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on Chinese products, citing concerns about illegal immigration and drug trafficking.
In response, Canada has revealed plans to impose 25% tariffs on $155 billion worth of U.S. goods, aiming to create significant economic pressure on the U.S.
The financial markets have reacted sharply to these developments, with the Canadian dollar experiencing a notable drop. Experts are concerned that these escalating trade tensions could negatively affect Canada’s economy, potentially leading to global economic slowdown and rising inflation.
The situation is fluid, and further economic consequences are likely as both nations move forward with their respective tariff strategies.
