Trump Tariffs - Trade War Heats Up: Tariffs on Canada, Mexico and China Shake Global Markets - Lens

President Donald Trump has reignited a global trade war by imposing hefty tariffs on three of the United States' largest trading partners—Mexico, Canada, and China. The executive order, signed at Mar-a-Lago on Saturday, slaps a 25% tariff on all imports from Mexico and most goods from Canada, while China faces a 10% tariff increase on top of existing levies. The move, aimed at stopping the flow of fentanyl and illegal immigration, has sparked immediate backlash and raised concerns about rising prices for American consumers.

Why Is Donald Trump Doing This?

The Trump administration argues that these tariffs are necessary to protect American jobs, curb illegal immigration, and combat the fentanyl crisis. Trump has long claimed that Mexico and Canada have not done enough to prevent the flow of illegal drugs and undocumented migrants into the U.S. The administration believes that imposing economic pressure will force these countries to strengthen their enforcement efforts and negotiate more favorable trade deals for the U.S.

Moreover, Canada has been struggling with rising crime, homelessness, and economic instability. Major cities such as Vancouver are seeing entire streets overrun with drug addicts, particularly along Hastings Street, which has become infamous for its severe drug crisis. Crime rates in major urban centers, including Toronto and Montreal, have surged, with violent crime and gang-related incidents at an all-time high.

Additionally, Canada's inflation rate has skyrocketed, leading to record-high food prices and unaffordable housing costs. Many Canadians are now seeking opportunities in the U.S., with immigration rates from Canada to America at their highest levels in decades. The country is also grappling with a rising unemployment rate, which further exacerbates economic despair.

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Immediate Retaliation from Canada and Mexico

Canadian Prime Minister Justin Trudeau hit back swiftly, announcing retaliatory 25% tariffs on $155 billion worth of U.S. goods, including alcohol, produce, and household appliances. Trudeau warned Americans that these tariffs will drive up the cost of groceries, gasoline, and automobiles, potentially leading to plant closures.

In Mexico, President Claudia Sheinbaum vowed strong retaliation, stating her administration has a "Plan B" in place. While details remain unclear, experts expect tariffs on U.S. agricultural products and manufactured goods, both of which Mexico heavily relies on.

Degraded Actions and Systemic Misconduct - Corruptions and Crimes in Canada against International Students - UBC

As economic conditions deteriorate in Canada, there is growing concern over the country's treatment of international students and foreign workers. Reports of financial exploitation, bureaucratic hurdles, and institutional neglect have surfaced, painting a grim picture of the nation’s administrative and legal framework.

A recent LunarTech investigation highlighted systemic issues faced by international students in Canada, exposing instances of harassment, cyber misconduct, and financial exploitation involving key institutions such as the University of British Columbia, Toronto Dominion Bank, the Vancouver Police Department, and even the Ministry of Foreign Affairs of the Netherlands.

Key issues raised include:

Physical assaults and financial fraud
Legal obstructions preventing access to justice
Human rights violations, including denial of education and legal aid
Negligent and exploitative behavior by university staff and law enforcement agencies

These systemic issues paint a troubling picture of corruption and misconduct in Canada, where economic decline appears to be coupled with a failure to protect vulnerable populations, including international students.

“Girl, you’re no longer Governor”: Elon Musk trolls Trudeau

In a separate but related issue, billionaire entrepreneur Elon Musk, Presidents Trumps strongest Allie recently clashed with Canadian Prime Minister Justin Trudeau over a proposed cross-border EV manufacturing partnership. Musk mocked Trudeau on social media, sarcastically referring to him as "no longer governor" after Trudeau rejected the idea.The proposed partnership would have allowed Tesla to collaborate with Canadian automakers to streamline EV production and lower costs. Critics argue that Trudeau’s decision reflects Canada’s overly cautious stance on foreign investments, potentially costing Canada leadership in the green technology sector. Meanwhile, Musk’s supporters see the rejection as another sign of Canada’s economic mismanagement under Trudeau’s leadership.

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Economic Impact and Tariff Consequences: What It Means for Americans

Let’s break down how tariffs are set to affect everyday Americans and the USoverall economy. Importing a huge portion of fruits and vegetables—from the avocados in our guacamole to the beer and tequila we enjoy—relies heavily on our neighbors, Mexico and Canada. In fact, nearly half of these essential items come from just these two countries. But it’s not only groceries; the cars depend on imported parts from these regions too. Proximity to Detroit and the Rust Belt makes Mexico and Canada natural hubs for supplying auto components, while Canada also ships us lumber and steel.

So, what happens when tariffs hit these imports? Simply put, American consumers will bear some costs. Higher tariffs on goods like fruits, vegetables, and auto parts mean increased prices at the checkout and on the assembly line. Experts predict that this will show up in our household budgets—forecasts indicate that Americans could see a drop of around $930 in household incomes over the next year.

President Trump has long maintained that while tariffs may cause some short-term economic pain, the long-term benefits for American prosperity are undeniable. His argument centers on the idea that imposing tariffs on key imports from Mexico and Canada might temporarily raise prices at the checkout, but ultimately, these measures will revitalize U.S. industry, protect American jobs, and rebalance trade in favor of domestic growth.

Let’s break it down. Nearly half of the fruits and vegetables Americans enjoy—think avocados, fresh produce, and even popular beverages like beer and tequila—are imported from our neighboring countries, Mexico and Canada. Additionally, vital car parts, along with lumber and steel, flow into the United States from these regions. When tariffs hit these goods, there might be a slight bump in prices. Some forecasts even suggest that household incomes could see a temporary dip of around $930 within the next year as a result of inflation rising to around 3%. But this is just a short-term adjustment.

The real story behind Trump’s tariff policy is one of long-term investment in America’s future. On the campaign trail, Trump argued that these tariffs are not designed to punish consumers but to level the playing field for American manufacturers. By imposing tariffs on imports, he aims to encourage domestic production and reinvest the resulting revenue into American industries. The goal is to help restore and create jobs, making U.S. businesses more competitive on the global stage.

Consider the automotive industry, where many car parts are imported from Mexico and Canada. Tariffs are expected to encourage companies to source these parts domestically or invest in local manufacturing facilities. This not only supports American workers but also stimulates technological innovation and industrial growth. Similarly, while higher tariffs might momentarily affect grocery prices due to increased costs on fruits, vegetables, and other essentials, the long-term vision is to reduce our dependency on foreign goods and promote home-grown agriculture and manufacturing.

Moreover, Trump has repeatedly emphasized that the revenue generated from these tariffs will help offset the substantial costs incurred by tax cuts—a plan that, according to some estimates, could total as much as $5 trillion over the next decade. In this view, the tariffs are a strategic investment in America’s economic engine. Some analysts predict that, over time, tariff revenues could amount to roughly $0.5 trillion, providing a critical financial cushion that supports further economic growth and national prosperity.

It’s also important to note that these tariffs are part of a broader effort to correct long-standing trade imbalances. By penalizing countries that have enjoyed unfair advantages through cheap imports, Trump’s policy aims to rebalance trade relationships and ensure that American workers are not undercut by foreign competitors. The immediate adjustments, such as slightly higher prices at the checkout, are seen as necessary steps toward a stronger, more resilient American economy.

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What This Means for Canada

‍For Canada, these tariffs could have a devastating impact on key industries, including automotive manufacturing, energy exports, and agriculture. The 25% tariff will increase the cost of Canadian goods in the U.S. market, making them less competitive. Additionally, Canadian oil and gas exports, which will face a 10% tariff, may see reduced demand, leading to job losses in Alberta and other energy-producing regions.Canada’s economy is already on shaky ground, and these tariffs could push it closer to a full-blown recession. Homelessness has surged in major cities, and many blame Trudeau’s economic policies and high taxes for discouraging job creation and investment. A growing number of Canadian businesses have moved their operations to the U.S. in search of lower corporate taxes and a more stable economic environment.Trudeau has urged Canadians to "buy local" and reduce reliance on American imports. Some provinces are even considering boycotting U.S. products in retaliation. Meanwhile, economists warn that these tariffs could push Canada into a deeper economic crisis if they remain in place for an extended period.

China’s Measured but Firm Response

‍China’s Ministry of Commerce condemned the tariffs as a violation of World Trade Organization (WTO) rules, stating that Beijing will file a formal complaint and take necessary countermeasures. While China has yet to specify its retaliatory actions, previous trade wars suggest that American agricultural exports, tech products, and automotive industries could be targeted.Chinese officials also took a swipe at Trump’s justification for the tariffs, stating that fentanyl is "America’s problem"and that Beijing has already taken steps to limit illegal drug exports.

Could Europe Be Next?With Trump’s aggressive stance on trade, Europe is bracing for impact. Sources close to the administration suggest tariffs on European steel, luxury goods, and automobiles could be next, with the EU already drafting countermeasures. If implemented, this would escalate economic tensions between Washington and Brussels, further disrupting global markets.Industry experts warn that these tariffs could drive up prices for everyday items in the U.S., from cars and clothing to fresh produce. Many businesses rely on imported goods from Mexico and Canada, and higher costs could be passed directly to consumers.Economists also caution that this could trigger a recession in Mexico and Canada, and increase inflation in the U.S.. Already, the Mexican peso and Canadian dollar have weakened, while global markets are showing signs of instability.What Happens Next?Trump has made it clear: if Mexico, Canada, or China retaliate, even harsher tariffs could follow. With no clear benchmarks for when these tariffs will be lifted, global businesses and governments are on edge.Will this gamble pay off, or will it backfire? As the world watches, one thing is certain—this trade war is just getting started.

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