Donald Trump speaks to reporters in the Oval Office on 31 January 2025 in Washington, DC. Photo: Chip Somodevilla / Getty images
Donald Trump’s administration announced new tariffs on imports from Canada, Mexico and China, which triggered a wave of criticism among US business leaders and international partners. The Wall Street Journal called the move “the most ridiculous trade war in history“.
What happened?
On 4 February, the United States imposed:
- 25% duty on imports from Canada and Mexico;
- 10% duty on Chinese goods, including oil and energy resources.
President Donald Trump said the decision was made because of the “threat of illegal immigration and drug trafficking“. The WSJ harshly criticised this argument, stressing that Trump “just loves tariffs for the sake of tariffs”.
The world’s reaction
- Canada retaliated with mirror duties on $155 billion of US imports.
- Mexico announced countermeasures and called for dialogue.
- China filed a complaint with the World Trade Organization (WTO).
How did the business react?
- JP Morgan: Bank CEO Jamie Dimon acknowledged that duties can be an “economic weapon” but warned of the risks.
- US Chamber of Commerce: Warned that the decision would undermine the US economy and hit American consumers.
- Yale University Budget Lab: Estimates that the new duties will cost each American household $1,000-1,200 annually.
Political criticism
Former US Treasury Secretary Larry Summers called the duties a “self-imposed shock” that will increase inflation andreduce US GDP by 1.5%.
Democratic Senator Amy Klobuchar commented on Trump’s actions as follows:
“Chaos is on the rise, corruption is on the rise, egg prices are on the rise… This is not the economy that Americans need.”
