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The tariffs would also invite retaliation. His U. The U. That is partly because Mexico has replaced China, locked in an ongoing trade war with the United States, as the source of many U.
The United States now does far more business β exports and imports alike β with both Canada and Mexico than it does with China. In , U. And no one knows if Trump will really pull the trigger or how long the tariffs would stay in place if he does. Trump views tariffs as a fix-it for most of what ails the economy. He says they raise money for cuts in income and corporate taxes, encourage companies to move production to the United States and offer useful leverage in pressuring other countries to make concessions on trade and other issues.
Companies are scrambling to prepare. Some bought goods and shipped them to the United States ahead of time to beat the tariffs. Others are calculating how much of the cost they can pass along to their customers. Canada and Mexico are bracing, too. Chrystia Freeland, the former finance minister who represented Canada in USMCA negotiations, has called for retaliation if Trump moves ahead with tariffs. She emphasized that the communication has been constant and continuing.
Trump has made clear that he has two main interests: immigration and fentanyl, Sheinbaum said. Her team is coordinating with the U. But if the U. By Associated Press. More in National Politics.