Trump initiates trade war with Mexico and Canada by applying 25% tariffs
The stock market experienced a sharp fall as Washington’s protectionist threat against its trading partners was fulfilled
North America ceased to be a free trade zone on Tuesday. U.S. President Donald Trump decided to ignore the treaty he himself negotiated and signed to govern trade relations with his two neighbors, Mexico and Canada. Using fentanyl as a pretext, the United States is imposing tariffs of 25% on imports from these countries, allies and friends, and somewhat lower — 20% — on products from its great geostrategic rival, China. With this, Trump is raising a tariff wall on North American economic integration and opening an era of uncertainty that has been very poorly received by the markets. Warren Buffett, the most prestigious investor in the United States, referred to the tariffs on Monday as “an act of war.” Wall Street suffered its worst session of the year.
