President Donald Trump has defended his sweeping tariffs on Canada, Mexico, and China, acknowledging potential short-term economic pain but insisting they are necessary to protect American industries. The tariffs, set to take effect at 12:01 a.m. ET on Tuesday, have triggered global market concerns, with economists warning of higher prices and economic slowdowns.
Speaking to reporters upon his return from Mar-a-Lago, Trump dismissed expectations of any immediate policy changes despite planned discussions with the leaders of Canada and Mexico. He stated that he does not expect anything dramatic and insisted that these countries owe the United States a lot of money.
The tariffs, which include 25 percent duties on Canadian and Mexican imports and 10 percent on Chinese goods, have already had an impact on global markets. U.S. stock futures fell by 2 percent, and Asian markets, including those in Tokyo and Seoul, also saw declines. The Canadian dollar, Mexican peso, and Chinese yuan dropped against the U.S. dollar, while oil prices surged by over one dollar per barrel due to Canada’s role as a major crude supplier to the United States.
Economists warn that the trade war could drive inflation, slow global growth, and potentially push Canada and Mexico into recession. Some experts fear the emergence of stagflation, a mix of stagnant growth, high inflation, and rising unemployment in the United States.
Trump also confirmed plans for tariffs on the European Union, though he did not specify a timeline. He accused the bloc of limiting American exports and said tariffs would definitely happen. European leaders are set to discuss the issue in Brussels on Monday.
Canada and Mexico have announced retaliatory tariffs in response. Canadian Prime Minister Justin Trudeau has encouraged citizens to boycott U.S. goods and vowed legal action. Canada is also preparing aid measures for businesses affected by the tariffs.
Mexico’s new president, Claudia Sheinbaum, condemned the tariffs, particularly Trump’s claim that they were needed to combat fentanyl trafficking. China’s Foreign Ministry also rejected this reasoning, stating that fentanyl is America’s problem. China has announced plans to challenge the tariffs at the World Trade Organization and hinted at further countermeasures, while still keeping the door open for negotiations.
Trump’s decision is facing criticism within the United States, including from both Republican and Democratic lawmakers. Some have warned of rising costs for American consumers, while Senate Minority Leader Mitch McConnell questioned the logic of imposing tariffs on allies. A recent Reuters/Ipsos poll showed that 54 percent of Americans oppose the tariffs, while 43 percent support them, largely along partisan lines.
With the Tuesday deadline approaching, businesses and investors are bracing for further trade disruptions. Analysts predict that automakers, energy companies, and consumer goods industries will be hardest hit, particularly those reliant on cross-border supply chains.
The European Union has promised a firm response, while companies like Volkswagen are urging negotiations to avoid escalating tensions.
Despite the mounting backlash, Trump remains firm in his stance, claiming the tariffs are necessary to end what he describes as an economic imbalance. He maintains that the United States has been taken advantage of for years and insists that these measures are needed to restore fairness in global trade.