Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH™.
During his second term, Donald Trump has continued to change how the United States operates with its allies. Recently, Trump and JD Vance met with Ukrainian President Volodymyr Zelenskyy at the White House to ease tensions with the current administration and finalize a mineral deal intended to be celebrated following their televised meeting.
However, the way Zelenskyy was treated during the exchange was a shocking break from modern diplomatic norms.
This incident is just one example of a broader shift—one that becomes clearer as the Trump administration continues to signal a closer alignment with Russia, making its willingness to bully allies increasingly apparent.
Previously, Donald Trump claimed that tariffs on Canada and Mexico would be paused before they were set to go into effect earlier this year. CNN reported that he kept to his word and imposed a 25% tariff on steel and aluminum imports from Mexico and Canada, with a 10% limit on Canadian energy.
Unsurprisingly, both countries retaliated with their own U.S.-focused tariffs, with Canada putting tariffs on $21 billion worth of American goods and a 25% tariff on electrical exports to the United States, per NBC News. Mexico has taken no action because Trump announced that any goods included under the United States-Mexico-Canada-Agreement would not be subject to tariffs. The Associated Press reported that China has not been exempt, facing a 20% import tariff and that these actions have effectively erased all post-election gains. Trump’s actions are taking a toll on Americans’ finances, driving market instability that sinks stocks and raising the cost of goods through tariffs—impacts that will hit wallets sooner than many expect.
As reported by CNBC, Target’s CEO has stated that tariffs will cause them to increase prices in their stores; specifically, produce categories will see price increases.
We played these games before during Trump’s first administration, when his tariffs increased the price of electronics like laptops, televisions, tablets, and car parts, making the cost of automotive care and automobiles more expensive. Economists estimated that some import prices increased by 10%-30% during Donald Trump’s first term, as reported by Reuters. The pattern repeats now in his current term, with tariffs being imposed on Canada, Mexico, and China and reciprocal tariffs being considered against all trade partners that tax U.S. imports starting April 2, as reported by ABC News. Trump intends to stand firm on this.
This means that whatever tariffs these countries impose on the U.S., we will impose on them in return.
It is widely understood that tariffs drive up consumer prices. Let’s examine how these tariffs against our top three trade partners, Canada, Mexico, and China, will impact prices here in the United States.
Americans often picture Niagara Falls, maple syrup, hockey, and Drake when they think of Canada. However, Canada also stands as a key economic partner—one that is not only geographically close but also deeply integrated with the U.S. economy. The primary imports from Canada to the United States are energy and automotive products. The Hill previously reported that Trump is postponing automotive tariffs by a month, but that still leaves the impact of tariffs on Canadian energy imports such as petroleum and natural gas, which power our cars and heat our homes. The tariff on Canada’s petroleum products would drive up fuel costs, impacting not just what we pay at the pump, but also the price of jet fuel. This could eventually lead to higher airfare prices over time.
The Hill reported that Canadian Premier Doug Ford has expressed his willingness for Canada to cut off all electricity exports to the U.S. with a smile on his face. States like New York, Michigan, Minnesota, and Washington, which are the top receivers of electricity from Canada, would be affected heavily if that were to happen. While some people believe in American exceptionalism no matter what, we do need our partners to keep the lights on.
Mexico is a country that has been framed as an enemy by the right but is an asset to us in more ways than one when it comes to getting what we need to get done here in the States. Their largest imports to the United States are automotive in nature, which, luckily, due to the one-month reprieve from the Trump administration, we will not be feeling the effect of tariffs this month. However, if tariffs on Mexico do come to pass, used and new cars, which have both increased in price over time, will become even more expensive for the average person. An analysis conducted by the University of Texas A&M reported that used car prices have increased by 33%, and new car prices have increased by 20-25% between 2019 and 2024. With the rising costs of car insurance and automotive repairs, any increase in the price of a car itself will only add to the financial strain, leaving a lasting impact on people’s pockets.
China has been a longstanding trade partner of the United States but has increasingly been viewed as an adversary since the COVID-19 pandemic. It is not lost on the average person just how intertwined China and the United States are regarding trade. Whether you are shopping on Shein or Temu or waiting for the newest game system to drop, China has a hand in making it happen. Suppose the 20% tariff on China continues. In that case, we will see price hikes in fast fashion, video game systems, and electronics more broadly due to the amount of lithium-ion we import, which is used in many electronics. Like Canada, China retaliated with tariffs of 15% on agricultural products that harm U.S. farmers who are already in a vulnerable position. China’s embassy issued a comprehensive statement in response to Trump’s justification for the tariffs, which he linked to fentanyl smuggling from China into the United States. As seen on X, the statement concluded with, “If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we’re ready to fight till the end.”
If his past administration is any indication, tariffs are here to stay, so consumers and businesses alike should be prepared to navigate how those will impact their daily lives in the foreseeable future.
The costs of a trade war will be both seen and unseen but will linger long after prices have gone down.
