The United States, Canada, and Mexico are in the midst of a trade conflict, with President Donald Trump imposing tariffs on goods from both neighboring countries. The tariffs, which went into effect on February 4, 2025, are part of Trump’s efforts to address trade imbalances and curb illegal immigration.
The Impact of Tariffs
The tariffs include a 25% tax on most exports from Mexico and Canada, with exceptions for oil and energy imports, which are taxed at a reduced rate. Trump has justified the tariffs by claiming they will address the illegal flow of migrants and fentanyl across U.S. borders while improving the nation’s trade deficit.
In response, both Canada and Mexico have retaliated with their own tariffs and non-tariff measures. However, in a rare move of cooperation, the U.S. government has agreed to delay the full implementation of these tariffs for one month to allow for negotiations on national security concerns along the U.S.-Canada-Mexico borders.
