New U.S. Tariffs

On February 1, 2025, President Trump announced a 25% tariff on all imports from both Canada and Mexico and a 10% tariff on goods from China. These tariffs were delayed until March 4th after initial negotiation and finally implemented on March 12th.

              President Trump has addressed multiple reasons for these tariffs, including national security concerns, reducing trade deficits, and protecting US industries. He also specifically aimed at combating illegal immigration and fentanyl tracking from Mexico and Canada.

              Impacts of the tariffs hit the economy immediately. Industries relying on steel, aluminum, and other imports are facing rapidly rising costs. Homebuilding costs are estimated to increase by $7,500 to $10,000 per single-family home. OECD cut down their global growth forecast from 3.3% to 3.1%. The countries we’ve targeted have retaliated, with Canada imposing a 25% tariff on $20 billion worth of US goods, and China placing a 10% to 15% tariff on US agricultural products.

              This ongoing trade war is posing possible long-term effects. This includes disrupted global supply chains, higher prices for US consumers, reduced customer spending, and strained relations with trading partners. In conclusion, these tariffs mark a major shift in trade policy. While they were intended to protect domestic production and address security concerns, they’ve also caused uncertainty in global and domestic markets.