Trading Goods Tariffs
Uncle Sam is trading fewer goods and more tariffs with his top three trade partners: Canada, Mexico, and China. Combined, the three countries account for ~40% of U.S. trade.
In an executive order signed Saturday, President Trump said the tariffs—25% on imports from Mexico and Canada (10% on Canadian energy products) and 10% on imports from China—are to hold the countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl” from entering the U.S.
The order includes provisions for hiking the import tax if the countries impose retaliatory tariffs… which happened almost immediately. Canada and Mexico promised their own 25% tariffs within hours, while China promised legal action against the taxes.
Supporters say the tariffs will boost American manufacturing industries; critics warn the levies could lead to higher inflation.
Verse to consider whether you’re negotiating with a global power, a difficult coworker, or a cranky toddler… “Seek peace and pursue it. The eyes of the Lord are on the righteous, and his ears are open to their cry for help.”
Psalm 34:14–15 (CSB) (read full passage)