Trump’s tariff threat worked on Colombia, but his plans for Canada and Mexico carry higher stakes

The Associated Press
January 28, 2025
Category: Business & Politics
Region: Canada, United States

Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday. But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with self-inflicted wounds from the tariffs. Trump has repeatedly insisted that tariffs on Canada and Mexico are about illegal border crossings and the smuggling of fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to “respect” the US. …The economics division of the insurance company Nationwide estimated that Trump’s proposed tariffs on Canada and Mexico would increase inflation by as much as 0.5 percentage points and pull down growth by 0.7 percentage points. The analysis noted it did not “account for potential retaliatory tariffs from Canada or Mexico, which could amplify the deleterious impact.”

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