Trump defends tariffs as Mexico, Canada and China plan retaliation
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() As President Donald Trump doubles down on his sweeping tariffs against the country’s three biggest trading partners, leaders from Canada, Mexico and China are biting back.

The levies of 25% on Canadian and Mexican and 10% on Chinese goods will take effect Tuesday. The affected countries say their strategy is to “make Americans feel the same pain too.”

President Trump laid out his motive on Truth Social, saying:

“We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason. We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use. Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada AND NO TARIFFS!”

Canadian Prime Minister Justin Trudeau hit back, announcing he will impose a 25% tariff on more than $100 billion worth of American goods, on everything from alcohol to perfume, clothing and produce. 

Mexico’s president Claudia Sheinbaum ordered similar retaliatory tariffs, sharing the following message in part on X: “If the United States government an d its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities.”

And China has vowed to file a case against the United States with the World Health Organization, defending their record on fentanyl. 

But how will this affect American’s wallets?

This could raise the price on a lot of things. Some of the top imported products from the United States include cars, produce, alcohol, cellphones, clothes and shoes.

Some Democrats also warn the tariffs could punch up the price of your Super Bowl party.

“I think we might want to call this the Donald Trump Super Bowl tax, with the big game coming next week. If you you know, avocados, tomatoes, beer from Mexico, price is going to go up,” Sen. Mark Warner, D-Va., said on CBS News’ “Face the Nation”

The Budget Lab at Yale University estimates Trump’s tariffs would cost the average American household $1,000 to $1,200 in annual purchasing power.

Gregory Daco, chief economist at the tax and consulting firm EY, calculates the tariffs would increase inflation, which was running at a 2.9% annual rate in December, by 0.4 percentage points this year.

Daco also projects the U.S. economy, which grew 2.8% last year, would fall by 1.5% this year and 2.1% in 2026 “as higher import costs dampen consumer spending and business investment.’’

The Associated Press contributed to this report.

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