Trump imposed 10% tariff on China and other countries.

Trump imposed 10% tariff on China and other countries. 

Trump's new tariff policy: Impact on China, Canada and Mexico

Recently, US President Donald Trump has started imposing new tariffs targeting major trade partners. He says that these countries are already imposing tariffs on America, which is causing losses to America. China, Canada and Mexico are among the first countries to be affected by these trade measures. Trump has imposed a 10% tariff on China, which is double the previous rate. Additionally, the US has imposed a 25% tariff on its exports to Canada and Mexico.

Reason behind America's tariff

When asked about these tariffs by reporters, a White House spokesperson said that large amounts of illegal drugs are entering the US from Canada and Mexico. In 2024 alone, more than 100,000 deaths were associated with drug-related issues, leading to devastating consequences for many families. Trump has expressed serious concern about this crisis and aims to curb the illegal drug trade while promoting legal economic trade.

 The tariffs are expected to have a major economic impact on Canada and Mexico in particular. Canada will suffer the most as more than 75% of its trade is directly linked to the US. Mexico, being a major supplier to the US, could see a drop in exports and an economic slowdown. The US, despite China's strong economy, will not be as affected as its trade dependence on the US is relatively less than that of Canada and Mexico.

The new tariffs will take effect on March 4 and could potentially reshape trade dynamics between the US and its neighbors. The real question is will these tariffs successfully curb illegal trade or will they create new economic challenges for North America? Global market and trade analysts will be closely monitoring the situation in the coming months.