Following the dramatic breakdown in U.S.-Ukraine relations, the geopolitical turmoil is now extending to North American trade, as President Trump prepares to impose sweeping tariffs on imports from Canada and Mexico starting March 4. The move was framed as a way to incentivize Mexico and Canada to move faster to block illicit fentanyl trafficking. Trump’s plan includes a 25% tariff on imports from Mexico and Canada, with an additional 10% tariff on Canadian energy products such as oil and electricity.  This impacts U.S. cars manufactured in Mexico/Canada, timber, oil, alcohol, agricultural products, aluminum, auto parts, medical devices, beer, and electronics.
‍

In response, Mexico and Canada have begun scrambling for concessions. Mexico has signaled willingness to impose its own tariffs on Chinese imports to align with U.S. trade priorities, while Canadian officials are exploring potential countermeasures. However, Trump’s aggressive tariff strategy risks triggering retaliatory actions, which could disrupt supply chains and push prices higher for American consumers. With markets already on edge, investors are bracing for heightened volatility as trade disputes escalate.