Donald Trump made a late-night post that shook trade markets: a plan for massive tariffs starting 01/20/25. His announcement breaks the deal he signed about 4 years ago with US biggest trade buddies
The former president wants to put 25% tax on stuff from Canada and Mexico (which is way more than anyone thought) and 10% on Chinese goods. “This tariff will stay until drugs and illegal aliens stop coming to our country“ he wrote on Truth Social platform
The United States-Mexico-Canada Agreement was the largest fairest most balanced and modern trade agreement ever achieved; theres never been anything like it
Trade experts dont understand why Trump picked on Canada - its weird because they trade $793-billion worth of stuff with US every year. Prof Stephen Millard from Economic Research says: “Canada is a big ally; it makes no sense to me“
The big problem is that no-oneʼs safe from these taxes:
* Mexico and Canada might have to deal with it
* Europe could be next in line
* Britain might get caught between US and China
* Asian countries that sell lots to US are at risk
Economics expert Vicky Redwood thinks its a way to make other countries do what US wants (like making Europe spend more on defense). The scariest part - if countries start hitting back with their own taxes; prices will go up for everyone and trade could get really messed-up