Trump’s tariff threats: Winners, losers and what it means for you

What just happened?: President Donald Trump threatened heavy tariffs on China, Canada and Mexico over drugs and border security. Canada and Mexico struck last-minute deals to avoid the tariffs, while China got hit with new duties and fired back.

Who got what:

China:

• Got Hit: New 10% tariff on Chinese goods
• Fired Back: New tariffs on U.S. energy, farm goods and trucks
• The Issue: Trump wants China to stop sending fentanyl ingredients to Mexico
• What’s Next: Trump threatens even higher tariffs if China doesn’t comply

Canada:

• Dodged: A 25% tariff on goods and 10% on energy
• The Price: Promised to:
  • Name a “fentanyl czar”
  • Label drug cartels as terrorists
  • Spend $200 million on border security
  • Keep 10,000 agents on the border
• Almost Happened: Canada was ready to hit back with tariffs on $155 billion in U.S. goods

Mexico:

• Dodged: A 25% tariff on all goods
• The Price: Agreed to send 10,000 National Guard troops to stop drugs at the border
• Why It Matters: Over 21,000 pounds of fentanyl were seized at the Mexican border last year

Why this matters:

• More than 107,000 Americans died from drug overdoses in 2023
• About 70% of these deaths involved fentanyl
• Both Canada and Mexico rely heavily on selling goods to the U.S.
• Even the threat of tariffs can shake up markets and trade plans

What people are saying:

• Trump: Claims victory in getting border security help
• Critics: Warn about higher prices for consumers
• Economists: Worried about trade wars and inflation
• China: Says U.S. should look at its own drug problems

What’s next: The U.S. and China remain in a standoff, while Canada and Mexico have 30 days to show they’re keeping their promises before tariffs might come back into play.

Read more:

• Tariffs paused after Canada, Mexico pledge border security boost

• Ontario Premier Doug Ford halts retaliatory measures after Trump tariff pause

• China angrily retaliates against Donald Trump’s new 10% tariff

• Sen. Chuck Grassley seeks fertilizer exemption from tariffs, sparking backlash