BREAKING: 25% Tariffs on Mex/Can - 10% More On China
04 Mar 2025 Reading time: 2 minutes
Largest Tax Increase On Americans In Modern American History
This new Trump Tax on Americans is the largest in modern American History.
25% Tariffs on Mexico and Canada, and 10% more on China, went into effect today. Additionally, a 10% import duty was placed on energy products from Canada.
As of this morning, China has already retaliated with a 15% tariff on some U.S. exports such as farm equipment. And yesterday, Canada also announced that 25% tariffs would be imposed on $107 billion worth of American goods. We should expect to see retaliation from Mexico as well, although they’ve not announced yet (UPDATE: Mexico says they will announce retaliator measures on Sunday).
Mexico, Canada, and China are the United States’ three top independent country trading partners - putting taxes on a large portion of U.S. imports.
Impact
The impact has already started. As I’ve mentioned in other articles, the mere act of threatening to turn your back on a trade agreement or threatening tariffs causes disruptions in markets. Not only is demand front-loaded, businesses begin raising prices to cover potential expenses. And now, those impacts grow as tariffs set in and taxes begin to be collected.
We will see prices continue to rise sharply for food, clothing, cars, car parts, lumber, cell phones, computers, electronics, toys, appliances, beverages, gas and oil, etc. Yes, essentially everything. Oh, and anything made using those products (for example, lumber prices going up means housing prices go up) - supply chain disruption.
This is all before the retaliation tariffs take place. Ultimately, this is primarily an attack on the American consumer and working class.
For more information please see my articles on Tariffs:
- Tariffs Part 1: An Introduction
- Tariffs Part 2: An Impossible Balance
- Tariffs Part 3: Foreign Relations, Reactions, and Retaliations
And see my prediction for how this turns out:
