The first results of US President Donald Trump’s tariff policy are disastrous! According to The Wall Street Journal (WSJ), the new duties are already hurting Americans. It is a surprising outcome for the White House!
Trump’s new tariffs against Mexico, Canada, and China have negatively affected Americans’ daily lives even though they have not come into force yet.
WSJ wryly noted that while Trump admits his tariffs might cause some pain for Americans, he promises they will usher in a golden age later. However, the pain is already here, and the tariffs are not even fully in place yet.
Some analysts warn that a 25% tariff on imports from Canada and Mexico could have serious economic consequences, forcing US partners to seek alternative markets. WSJ did not hold back, calling this move by the Trump administration "the dumbest trade war in history." They predict the policy will hurt American companies and provoke retaliation from Ottawa and Mexico City.
The pushback has already begun. Canada and Mexico have both announced counter-tariffs. Ottawa has unveiled 25% duties on US goods worth 30 billion Canadian dollars, covering alcohol, food, clothing, and household appliances. Earlier, Canadian Prime Minister Justin Trudeau warned that Canada might restrict exports of critical minerals to the US.
Analysts also predict that US tariffs will disrupt its own energy markets, which are tightly linked to the global economy. WSJ notes that Trump seems to acknowledge this risk as he imposed only a 10% tariff on Canadian oil exports. However, even at that rate, the tariff will create problems for American refineries.
Meanwhile, Jay Timmons, president of the National Association of Manufacturers, has warned that these tariffs undermine American industry’s global competitiveness. He believes they will severely hurt small and medium-sized businesses that cannot quickly find alternative suppliers.
WSJ suggests that while Trump’s policy might weaken the economies of Canada and Mexico, which heavily rely on the US market, it will not necessarily push the US into a recession. However, the consequences of this trade war will linger for a long time. In the long run, such confrontation could drive US partners away from the American economy.
