Trump Threatens Tariffs on Mexico and Canada

President Donald Trump says he wants to add new taxes, up to 25%, on products coming from Mexico and Canada starting February 1st. This has raised worries about possible trade conflicts between the U.S. and its closest neighbors.

Experts say these taxes could hurt North America’s economy, especially since businesses in these countries rely on shared supply chains.

Trump’s team claims the taxes are needed to protect U.S. jobs and companies. However, critics warn this could make everyday items more expensive for Americans and damage relationships with Mexico and Canada.

The plan arrives as both countries are still rebuilding their economies after the pandemic, upsetting companies that depend on cross-border trade.

Leaders are now talking about ways to avoid or reduce the taxes, but businesses are preparing backup plans in case they take effect.

The decision could reshape how the U.S., Canada, and Mexico work together on trade and set the tone for future economic partnerships during uncertain times.