U.S. Trade Tariffs

 The latest round of U.S. tariffs has triggered a global chain reaction, with key trading partners retaliating, realigning supply chains, and reshaping trade policies. From North America’s countermeasures to Asia’s manufacturing pivots and Europe’s economic defense, every region is adjusting to the new reality.

Following the imposition of 25% tariffs on Canadian and Mexican imports by the U.S. (effective February 4, 2025), both countries have announced significant retaliatory measures. 

• Canada has imposed 25% tariffs on $155 billion worth of U.S. goods.
• The tariffs will be implemented in two phases:
• Phase 1: $30 billion in tariffs effective March 4, 2025.
• Phase 2: $125 billion in tariffs to be implemented after a 21-day public comment period.

• Trade with the U.S. accounts for 77% of Canadian goods exports and 63% of imports, with exports responsible for 19% of Canadian GDP.
• The provinces most reliant on U.S. markets include Ontario (81%), Alberta (89%), and New Brunswick (92%).

 Mexico’s trade relationship with the U.S. is deeply integrated under the USMCA framework.

• The country is also leveraging agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand trade with Asia-Pacific economies.