The past weeks have been confusing for citizens of the U.S. and for people around the globe as tariffs have been renegotiated. Justin Trudeau and Mexican government officials have convinced President Trump to wait with his tariff plans, and China has responded with its own tariffs and has stopped exporting some of its minerals to the U.S. Trump’s tariffs have real consequences, and in these tumultuous times it’s helpful to know what is going on.

On Jan. 20, President Donald Trump announced tariffs on imports from Mexico, Canada, and China.

After a call with President Claudia Sheinbaum of Mexico on Feb, 3, Trump agreed to delay the national tariffs for one month in exchange for higher border security. Specifically, Sheinbaum promised to cooperate in stopping the flow of weapons and fentanyl with 10,000 troops. The Mexican national guard has rolled into action, patrolling Mexico’s northern border for fentanyl smugglers. Sheinbaum argued that the tariffs would interrupt trade deals that are crucial for U.S. interests and would lead to unrest in both countries. One big business the U.S. relies on Mexico for is the motor industry, specifically for cars and motor parts. 

Justin Trudeau, the widely unpopular Canadian prime minister, surprised Americans by directly talking to them in his speech on Feb. 2, before his talks with Trump. 

“Together we’ve built the most successful economic, military, and security partnership the world has ever seen. A relationship that has been the envy of the world… As I’ve said before, if President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada,” he said.

Many Canadians share a similar sentiment, fearing not only for their own prices but also for those of the neighboring Americans. 

Trudeau recently talked with President Trump, who agreed to delay the national tariffs for thirty days, a deal similar to the one made with Mexico. One condition discussed was the prevention of fentanyl from entering the United States from Canada, despite insignificant evidence for any fentanyl from that vector. Fox News has called this move a success for Trump.

China’s Xi Jinping has responded to Trump’s 10 percent national tariffs and refusal to renegotiate by introducing its own tariffs. These tariffs include a 10 to 15 percent tariff on U.S. coal, crude oil, and natural gas, and a 10 percent tariff on some vehicles. The People’s Republic of China also has used some other creative tactics to combat this move, including restricting the export of rare metals to the United States. Tungsten, molybdenum, bismuth and others are critical to U.S. space and computer industries. Another tactic implemented by the Chinese government is launching a probe into Google, a company that has supported Trump’s policies, and placing other companies on unreliable lists. These moves could be considered unrelated.

Trump announced a new tariff during his flight to the Super Bowl. He told reporters of a blanket 25 percent tariff on steel and aluminium entering the United States from all countries. Trump also discussed a separate reciprocal tariff on all countries with tariffs on the U.S. with reporters.

We have yet to see if Trump will reinstate these national tariffs on Mexico and Canada and how China will continue its economic activities.

Article by Emmett Coughlan