President Trump’s recent tariffs on Canada, Mexico, and China have sparked concerns in both domestic and international markets, impacting investors and manufacturers. This move led to retaliatory measures by Canada and China following the imposition of tariffs by the US. The tariffs include a 25% levy on most imports from Canada and Mexico, with an additional 10% tariff on Canadian energy exports, while tariffs on Chinese goods have been raised from 10% to 20%.

Amid fears of a global trade war, worries have emerged that consumers may face higher prices on everyday goods. Speculation on social media has linked tariffs to the Great Depression, but experts like economics professor Gary Richardson refute this claim, stating that the depression began when tariffs were low. The Great Depression, a severe economic downturn lasting nearly a decade starting in 1929, had multiple contributing factors, including actions by the Federal Reserve and President Herbert Hoover’s policies.

While concerns persist over the current trade war’s impact, economists believe the economy is in a better position than during the Great Depression. The possibility of another depression is considered unlikely, but a slowdown with higher prices and potential job impacts is plausible. Trump’s tariff strategy, though historically high, differs from past tariffs in terms of implementation responsibility. Economists warn of negative economic implications and the potential for a recession due to the escalating trade tensions.