President Donald Trump has fulfilled his campaign promise by imposing tariffs on imports from the United States’ three largest supplier countries—Canada, China, and Mexico. Trump signed orders imposing 25% tariffs on imports from Mexico and Canada (with Canadian energy facing a lower tariff of 10%) and 10% tariffs on goods from China. The Executive Order titled “Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border” aims to address these issues.

Trump took to his social media platform, Truth Social, to discuss the tariffs, emphasizing the need to protect Americans from threats like illegal aliens and deadly drugs. The tariffs have raised concerns among consumers and economists about potential price increases on goods and services, impacting affordability.

Tariffs, such as those imposed by Trump, are taxes on goods imported from other countries, known as “ad valorem tariffs.” While domestic importers typically pay tariffs, consumers may ultimately bear the cost through price hikes. Trump’s rationale for tariffs includes boosting American manufacturing, addressing unfair trade practices, and halting the flow of undocumented immigrants and illegal drugs into the U.S.

Studies suggest that Trump’s proposed tariffs could increase annual costs for U.S. consumers, potentially hitting lower-income individuals the hardest. While previous tariffs led to increased production in certain sectors, widespread tariffs may significantly impact inflation for American consumers. Retaliatory measures from Canada and Mexico could escalate into a broader trade war, further fueling inflation concerns. China has also expressed opposition to the tariffs and vowed to take necessary countermeasures.