US President Donald Trump unleashed Trump Tariffs 2025, slapping 25% duties on imports from Mexico and Canada and hiking Chinese goods tariffs to 20%.
Trump’s tariffs, which take effect at 12:01 AM EST, target $2.2 trillion in annual trade. These measures aim to reduce fentanyl flows but may negatively impact US growth and increase prices for inflation-weary Americans.
Global stocks tanked as the tariffs hit. US indexes dropped, with Nasdaq entering correction territory after Europe’s worst day in six months. Automakers, retailers, and homebuilders slumped, dragging 10-year Treasury yields to an October low.
1/ At 12:01 a.m. ET today, the Trump administration implemented its latest tariffs—25% on Canada and Mexico, and 20% on China/Hong Kong.
— Flexport (@flexport) March 4, 2025The dollar dipped against the yen and franc, while the Mexican peso and Canadian dollar weakened. Retailers like Target and Best Buy braced for hikes—avocados and electronics face immediate jumps, with Target’s Brian Cornell eyeing price tags “within days.”
2/ In response, Canada announced a 25% retaliatory tariff on C$30 billion in U.S. goods, while China announced new tariffs as high as 15% on a range of U.S. agriculture goods. Mexico is expected to announce its own countermeasures on Sunday.
— Flexport (@flexport) March 4, 2025China fired back, slapping 10-15% tariffs on US goods like meat and grains starting March 10, alongside export bans on 25 US firms, including 10 tied to Taiwan arms sales. Canada’s PM Justin Trudeau vowed C$125 billion in counter-tariffs—think cars and beef—if Trump’s duties linger past 21 days, challenging them via WTO and USMCA rules. “This trade war hits American families hardest,” Trudeau snapped.
The Trump Tariffs 2025 defy Trump’s pledge to cut living costs. Best Buy’s Corie Barry warned of electronics price creep, given six-week inventory buffers, while Nationwide’s Kathy Bostjancic pegged household cost hikes at $1,000 yearly.
China’s 20% duty stacked on prior 10-100% tariffs nails smartphones and EVs, compounding pain from Biden’s hikes. US farmers, burned by $27 billion in lost sales during Trump’s first term, brace for round two.
Trump Tariffs 2025 jolt trade with America’s top partners, risking recession and inflation spikes. Will retaliation cool off, or are prices here to stay?
