Introduction to Tariffs

President Donald Trump announced the imposition of tariffs on goods from some of the US's biggest trade partners: Canada, Mexico, and China. Under the executive orders signed on February 1st, Canada and Mexico will face a 25 percent tariff, while goods from China will be subject to a 10 percent tax. Energy resources from Canada will also have a lower 10 percent tariff.

Trump positioned the tariffs as a way to “halt the flood of poisonous drugs into the United States,” referring to fentanyl. The change will have a significant impact on the cost of a wide variety of goods imported from each country, including electronics, produce, clothing, and much more.

Impact on Consumers and Businesses

Though Trump previously said the tariffs will “enrich” citizens, consumers are expected to bear the brunt of the fees as they typically lead to higher prices. Big Tech companies, which rely heavily on imported goods for manufacturing and production, may also feel the effects of these tariffs.

The tariffs could lead to increased costs for companies like Apple, Google, and Amazon, which could then be passed on to consumers. This could potentially slow down the growth of the tech industry and impact the overall economy.

Global Trade Implications

The imposition of tariffs on Canada, Mexico, and China has significant implications for global trade. The tariffs could lead to a trade war, where other countries retaliate with their own tariffs on US goods. This could lead to a decline in international trade and economic growth.

The tariffs also raise concerns about the impact on the global supply chain. Companies may need to rethink their manufacturing and production strategies, potentially leading to changes in the way goods are produced and distributed.