How Donald Trump’s tariffs have sparked global concern – and huge political change
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Trump has repeatedly told America how tariffs will benefit Americans, while experts have warned they will result in higher prices on everyday products. Canada, China and Mexico have been affected so far, but what comes next?
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In brief…
- Trump has admitted his tariffs could make things worse for everyday Americans in the short term, but retailers and insiders have said his plan will result in even higher prices as the US cost of living crisis continues.
- Trump has said he is pushing these tariffs through Congress due to the deadly drug fentanyl crossing borders into the US, although official numbers contradict the president’s claims.
- Tariffs may also be imposed on other parts of the world, including the EU, and while Trump has remained “positive" about the UK’s exemption, he has cleverly avoided confirming anything either way.
What’s the story?
Tariffs will make America great again. They will make America rich again.
That's what Donald Trump believes, and wants the people of America to believe – despite recently warning that things may get "bumpy" for everyday Americans once they are introduced.
By "bumpy", he means much more expensive, according to experts, who have widely dismissed the president's claims, saying that money slapped on imports from overseas will be passed on directly to consumers.
Major US retailers have warned that it is "highly likely" that prices rise immediately after tariffs are introduced. Exports from Mexico to the US will be hit with a 25% tariff – paid by the importer to the government and likely then passed on to consumers by a rise in product prices – while most imports from Canada and Mexico will also be subject to a 25% tariff.
The 10% tariff imposed on Chinese products in February 2025 has now been doubled to 20%.
In 2024, more than 40% of imports to the US came from these three countries.
Longterm, Trump believes tariffs will make it possible to cut taxes if more money is paid by businesses to the government, as well as encouraging companies to buy more products from American suppliers.
What do tariffs have to do with drug imports?
The Trump administration has said tariffs have been imposed on Canada, China and Mexico to hold them "accountable" for illegal immigration and the flow of fentanyl and other drugs into the US.
The White House says that the chemicals are supplied by China, and turned into fentanyl in Canada by Mexican drug gangs.
Canadian PM Justin Trudeau says just 1% of the fentanyl in America comes across its borders. In September 2024, it was found that 98% of seized fentanyl coming into the US came from Mexico, which is already working to tackle the crisis.
Emily Maitlis says Trump's focus on fentanyl has been to ensure his tariffs are approved by Congress, where he has previously struggled to get his bidding done on this issue.
"Up to this point, Trump cannot unilaterally get tariffs through without Congress, except if he declares an emergency ruling," she says.
"This is the reason you might suspect why he's talking about fentanyl, why he's talking about this epidemic, why he's talking about illegal immigration.”
She adds it "makes no sense" when Mexico is already working to reduce the amounts that cross its borders, and even less with Canada, when it produces so little.
How is the UK affected?
The UK, so far, has only been affected by wider Trump tariffs, such as a change to its exemption to 25% import charges on steel and alcohol, both of which are exported from the UK.
The Trump administration has hinted that tariffs could be imposed on exports from the EU, which could mean a tangible benefit from Brexit for the UK.
Keir Starmer's recent meeting with the president appeared a success at first glance, but in reality contained very little in the way of concrete promises that it will remain exempt.
“I think we could very well end up with a real trade deal where the tariffs wouldn't be necessary. We'll see,” Trump said.
It was “positive”, says Lewis Goodall says, but the words could prove to be empty.
“Although Trump gave lots of warm words, didn't say anything negative, and he sounded positive as ever, he didn't he didn't box himself into anything," says Lewis Goodall.
"He didn't actually give an absolutely firm commitment on tariffs. He didn't say the UK will definitely be exempt.
Liberal Democrat leader Ed Davey recently told The News Agents of his concerns about tariffs imposed from the US, and how it could result in a global trade war, which affects economies the world over.
"Even if they're not directly on us, that will hurt us," Davey said.
"He loves his trade wars, he calls himself tariff man. That can make things even worse.
"One of the reasons Liberal Democrats are calling for the UK to negotiate a UK EU Customs Union, is to try to push the government to do something for our growth and to protect us from a Trump presidency."
Has Trump’s tariff war already COLLAPSED?!
How have Canada, China and Mexico reacted?
All three countries have imposed retaliatory tariffs on exports from America.
"America's not going to have a great time with these tariffs," says Emily.
"What other countries are learning is you can suck up to Trump up to a point, you can talk nice up to a point.
"As soon as he shows that none of it really matters, because he is a bit of a psychopath."
But the biggest impact has been felt in Canada.
It led to some Canadian stores removing US alcohol from its shelves in retaliation against tariffs, and the US national anthem being booed at sporting events, and more so - it has resulted in a major shift in Canadian politics.
Trump's tariffs, and public intention to turn Canada into the "51st state", have been so unpopular, it has meant a monumental decline in popularity for the Conservative Party of Canada, whose leader, Pierre Poilievre, is firmly pro-Trump.
Previously 26 points ahead of the Liberal Party of Canada, (currently led by Justin Trudeau), this has been rapidly flipped, with the Liberals now expected to take a comfortable win in this year's election, sparked by Trudeau stepping down.
"Trudeau's party was in the toilet, and it suddenly kind of comes alive again because of the sense of Canadian patriotism instilled by Trump's tariffs," says Jon Sopel.
Listen to the latest episode of The News Agents.
