With the deadline approaching, companies in Canada, Mexico, and China are nervous about the reimposition of Trump-era tariffs, which could be a trade and supply chain disruptor across several industries. The impending tariffs are likely to hit major sectors, such as automobiles, steel, electronics, and agriculture.
Previous President Donald Trump has signaled 100% tariffs on Chinese imports if re-elected, and trade restrictions on North American partners might affect manufacturing and cross-border commerce under the USMCA (United States-Mexico-Canada Agreement).
Business leaders are calling for diplomatic negotiations to avert economic damage, cautioning that higher tariffs may result in elevated consumer prices, lost jobs, and retaliatory actions from trading partners. Businesses are meanwhile racing to establish alternative supply chains before disruptions occur.
With the global economy already suffering from inflationary pressures, the effect of this trade policy change could be extensive. While negotiations are ongoing, markets and policymakers across the globe keep a keen eye on Washington’s next action.
