U.S. President Donald Trump’s aggressive tariff policies have left a lasting impact on international trade, particularly with neighboring countries and major global economies. Under his administration, tariffs are imposed on a wide range of goods from countries like Canada, Mexico, and China, igniting trade wars that reverberated across the global economy.

In 2018, Trump imposed tariffs on steel and aluminum imports, citing national security concerns under Section 232 of the Trade Expansion Act of 1962. Canada and Mexico, the United States’ closest trading partners, were significantly affected. The tariffs were set at 25% on steel and 10% on aluminum, leading to strained diplomatic relations and economic uncertainty.

The tariffs disrupted North American supply chains, increased production costs for U.S. manufacturers, and led to higher prices for consumers. In Canada, industries reliant on steel and aluminum exports faced immediate challenges, while Mexico saw a decline in cross-border trade efficiency. The U.S. economy experienced mixed outcomes—while some domestic industries benefited from reduced foreign competition, others, particularly in the automotive and construction sectors, faced increased costs.

Retaliatory Measures by China, Canada, and Mexico In response to U.S. tariffs, Canada, Mexico, and China implemented their own retaliatory measures:

Canada Imposed tariffs on $12.6 billion worth of U.S. goods, including whiskey, orange juice, and dairy products, directly targeting industries in politically significant U.S. states.

Mexico Applied tariffs on U.S. agricultural products like pork, cheese, and apples, affecting American farmers who heavily relied on exports to Mexico.

China Launched extensive retaliatory tariffs on $110 billion worth of U.S. goods, focusing on soybeans, automobiles, and chemicals, which significantly impacted American farmers and manufacturers.

After being re-elected as the 47th President of the United States in 2024, Trump reinstated and expanded several of his earlier tariff policies. In 2025, new tariffs were imposed on a broader range of goods from China, Canada, Mexico, and the European Union. The tariffs on Chinese technology and electronics were increased to 35%, while Canadian and Mexican agricultural products faced additional duties of up to 20%.

As BRICS nations—Brazil, Russia, India, China, and South Africa—moved forward with de-dollarization efforts, aiming to reduce dependency on the U.S. dollar in international trade, Trump threatened to impose sanctions on these countries. The de-dollarization initiative posed a potential challenge to the dominance of the U.S. dollar as the world’s primary reserve currency, prompting strong reactions from the Trump administration. Such sanctions could further escalate tensions between the U.S. and emerging economies, potentially destabilizing global financial markets.

Trump also signaled the possibility of imposing tariffs on European Union nations, citing unfair trade practices and imbalances in automotive and agricultural sectors. Proposed tariffs on European cars and luxury goods raised concerns among EU leaders, who warned of reciprocal measures that could trigger a broader transatlantic trade war. The threat of such tariffs strained U.S.-EU relations and introduced additional volatility into global markets.

Trump’s tariff policies and threats of sanctions have had far-reaching implications, affecting not only bilateral trade relationships but also the broader dynamics of global commerce. The retaliatory measures by Canada, Mexico, China, and now the European Union highlight the interconnectedness of the global economy and the risks of protectionist policies. As BRICS nations continue their de-dollarization efforts and the EU remains engaged in trade disputes, the long-term impact of these conflicts on the U.S. economy and its global standing remains a critical issue for policymakers and economists alike.