Economic tensions rise as the U.S. adopts new protectionist measures

President Donald Trump has announced the imposition of 25% tariffs on products imported from Canada and Mexico, while imports from China will face a 10% tax.

In response to this decision, Canadian Prime Minister Justin Trudeau stated that his government would respond in a “firm but reasonable” manner. Meanwhile, White House Press Secretary Karoline Leavitt dismissed previous reports suggesting that these tariffs would take effect on March 1 and reaffirmed that the 25% rates would apply to Canada and Mexico, while the 10% rates would apply to China.

The government has not provided precise details on the tariffs, although Trump has repeatedly stated that they would take effect on February 1. Later, in the Oval Office, the president suggested that Canadian oil, which exports millions of barrels of crude to the United States daily, would “probably” face a reduced tariff of 10%. He also expressed his expectation that his administration would impose tariffs related to oil and gas around February 18.

This measure has raised concerns among the United States’ main trading partners, who fear that the decision could trigger an economic confrontation with the Trump administration. In response to these tariffs, Ontario Premier Doug Ford announced early elections for February 27, 2025, to address the potential economic consequences of these policies in the Canadian province.

Trump has pushed these tariffs as part of his strategy to reverse what he sees as a decline in the U.S. economy. His approach aims to restore the country’s influence and economic power through protectionist policies and trade restrictions.

Businesses worldwide are on high alert, anticipating potential economic disruptions due to the uncertainty surrounding Trump’s tariff threats. In the automotive sector, significant changes are expected in Europe, the United States, and China due to the elimination of subsidies for electric vehicles, the relaxation of emissions regulations, and the imposition of new tariffs on automobile imports.

These actions reflect a shift toward protectionism in U.S. trade policy, moving away from traditional international trade principles and prioritizing domestic production over imports.