Donald Trump’s recent tariff decisions have elicited anger from various quarters, including the stock market, international leaders, and even Republican lawmakers. Initially announced over the weekend, Trump swiftly reversed his tariffs on Mexico and Canada, but this change did little to recover losses in the market caused by the original news. Veteran Republican Mitch McConnell voiced his opposition, warning that increased tariffs would raise prices for American consumers and potentially harm economic relations with allies.
Despite aiming to combat the trafficking of fentanyl and illegal immigration, Trump’s accusations against Canada were met with strong rebuttals. Only a small fraction of fentanyl intercepted at US borders last year originated from Canada, and recent Canadian sports events revealed public discontent towards the US. In response, Canadian officials have begun to cancel deals with American companies and remove US products from shelves.
Global reactions varied, with China cautioning against the negative impacts of a trade war and noting the need for the US to reassess its approach to domestic issues instead of imposing tariffs. Yale’s Budget Lab estimated that tariffs could cost American households around $2,000 annually, raising concerns about job losses in American manufacturing as the auto industry relies heavily on cross-border supply chains. Meanwhile, both Mexico and Canada have reinforced their borders in light of these tensions.