Since his reelection to a second term, President Trump has vowed to impose tariffs on other nations. Canada, Mexico, and the European Union have been identified as targets for placing tariffs. President Trump reasons the tariffs ensure the safety of Americans.
More recently, the Prime Minister of Canada and the President of Mexico negotiated with President Trump to delay tariffs for 30 days. In exchange for the delay, Canada and Mexico agreed to send troops to their border with the US.
Tariffs are taxes on imported goods. For example, the US imposing tariffs on Mexico means that goods from Mexico entering the US are taxed. Supporters of tariffs argue they protect local economies. Tariffs usually result in higher prices for foreign goods. Companies that import goods must pay the tariff, so they raise their prices to cover it. According to those who support tariffs, the rise in prices of foreign goods will encourage people to buy goods specifically produced in their own country.
Those against tariffs argue that they harm target nations economically. Canada, a prime target of American tariffs, has recently experienced an economic crisis with higher prices. According to those against tariffs, tariffs imposed on Canada will further increase the prices of goods from the US. Stores across Canada have put up labels that read “Buy Canadian Instead,” suggesting to shoppers that they should only buy products made in Canada.
Illustration of a sign in Canadian stores urging customers to buy products made in Canada
Members of the Canadian parliament have responded negatively to Trump’s tariffs. Canada’s Prime Minister, Justin Trudeau, announced he would impose retaliatory tariffs on the US. A few days after his announcement, President Trump and Prime Minister Trudeau agreed to delay the tariffs.
The Mexican government has had a lax approach compared to Canada. Mexican President, Claudia Sheinbaum, plans on letting Trump make the first moves before deciding on how to respond.
