President Donald Trump has announced that a 25% tariff on imports from Canada and Mexico will take effect at midnight, marking a significant shift in trade policy with two of America’s largest trading partners. The decision, which the administration says is aimed at protecting American industries and jobs, has already sparked reactions from business leaders and government officials in both neighboring countries.
According to the White House, the tariffs will apply to a range of goods, though specific industries most affected have yet to be detailed. Trump defended the move as a necessary step to counter what he describes as unfair trade practices and to encourage more domestic production.
Officials in Canada and Mexico have expressed concern over the decision, warning that the tariffs could disrupt supply chains and lead to retaliatory measures. Both governments are reportedly considering their response, with some trade experts predicting potential countertariffs that could escalate tensions.
The move comes as Trump continues to prioritize economic policies that emphasize American manufacturing and self-reliance. While some domestic industries stand to benefit from the protectionist measures, others, particularly those dependent on cross-border trade, have raised alarms about rising costs and potential economic fallout.
With the tariffs set to take effect, businesses and policymakers on all sides are closely watching how the new trade restrictions will impact economic relations between the three nations. The coming weeks are expected to bring further negotiations and possible trade disputes as Canada and Mexico evaluate their next steps.