Feb 13, 2025

In a dramatic escalation of trade tensions, US President Donald Trump has imposed an across-the-board 10% tariff on goods from China, threatened a 25% tariff on imports from Canada and Mexico, and vowed similar measures against the European Union. His stated objective is to secure deals to halt the flow of drugs and unauthorized immigration into the United States, suggesting that tariffs will now be an instrument of border security. But trade barriers on this scale could destabilize global markets, drive up prices for American consumers, and potentially drag the US – and the world – into recession. In betting that the potential economic fallout is worth the gains in border security, Trump is gambling with America’s long-term influence and prosperity.