President Donald Trump's administration has confirmed the application of tariffs of 25% on imports from Mexico and Canada, and 10% on China. The measure, which went into effect this February 1, 2025, has generated concern in the economic and commercial sectors, as well as in the Hispanic community in the United States.

Why is Trump imposing these tariffs?

According to the White House, the decision is part of the "America First Trade Policy" strategy, established in the executive order signed on January 20. For the government, this measure is justified, first, to combat fentanyl trafficking. The administration accuses Mexico and Canada of not doing enough to stop the flow of illegal drugs into the US.

"These countries have allowed in massive amounts of fentanyl that are killing tens of thousands of Americans," White House spokeswoman Karoline Leavitt said at the Jan. 31 conference.

The other area for which the tariffs are working is controlling illegal immigration. "The United States will no longer tolerate illegal immigration. We will use every tool available to curb this problem, including trade sanctions," Leavitt said.

Finally, Trump has reiterated that the U.S. has suffered from "disadvantageous agreements" and that it is necessary to protect the national economy. This on account of a goods deficit that accumulated to last November US$1.07 trillion (millions of millions).

The background

During his first term, Trump imposed tariffs on China in 2018 under Section 301 of the Trade Act of 1974, arguing unfair trade practices and intellectual property theft. Those tariffs generated retaliation from China and a period of instability in global markets. Now, in his second term, tariff policy is once again a central tool for his economic and national security strategy.

What products will be affected?

The new tariffs will impact a wide range of products that consumers in the U.S. buy on a regular basis:

- From Mexico and Canada: automobiles, technology, televisions, appliances, food and steel.
- From China: Electronics, microchips, textiles and pharmaceuticals.

According to analysts, this could translate into higher prices in supermarkets, electronics stores and car dealerships in the U.S. "Increased uncertainty in trade policy will increase financial market volatility and put pressure on the private sector," said economist Gregory Daco of EY.

Reactions from Mexico, Canada and China

The first reactions from the affected countries have been strong. Prime Minister Justin Trudeau announced that "Canada will respond immediately" with possible trade retaliation. "If the U.S. imposes tariffs, we will respond and we will not relent until they are eliminated," he said.
President Claudia Sheinbaum indicated that her government has prepared a "plan A, B and C" to counteract the effects of the tariffs. "There is going to be less availability of products and problems in the supply chains in the North American region," warned Economy Secretary Marcelo Ebrard.
In the case of China, it has not yet announced countermeasures, but experts predict that it could raise taxes on U.S. imports.

Impact on the Latino community in the U.S.

The Latino community, which represents a key percentage of the U.S. population, could be one of the most affected if a price increase in basic products such as food imported from Mexico materializes. There could also be an impact on the automotive industry, as many Latinos work in the manufacture and sale of automobiles, a sector that could suffer cutbacks. Affected supply chains could cause import and export companies to cut jobs.

"Prices are going to be higher, that is, they are going to raise the price 25% of all those products," warned Marcelo Ebrard about the impact on U.S. consumers.

Trade war?

Economists warn that if the affected countries impose retaliatory measures, the U.S. could face an increase in import costs and possible blockades of U.S. products.

The T-MEC (Treaty between Mexico, the U.S. and Canada) could be key in the negotiation of tariffs. Mexico and Canada could resort to legal mechanisms within the agreement to challenge the tariffs imposed by Trump. "Mexico and Canada are theoretically protected by the T-MEC free trade agreement signed during the Republican's first term and due to be renegotiated in 2026," AFP recalled in its coverage of the issue.

The economic impact

Some analysts fear that these tariffs will cause an inflationary effect. Gregory Daco, chief economist at EY, estimates that "inflation will increase by 0.7 percentage points in the first quarter of this year due to the tariffs". He also warns that "increased uncertainty in trade policy will increase financial market volatility and put pressure on the private sector."

On the other hand, Trump supporters argue that these tariffs will incentivize domestic production. "Some companies may move their production to the U.S. to avoid additional import costs," mentioned a report from the Office of the U.S. Trade Representative.

Frequently Asked Questions

Will tariffs directly affect consumers?
Yes, experts foresee an increase in the prices of products such as food, automobiles and electronics.

Can Mexico and Canada legally challenge the tariffs?
Yes, they can file complaints under the T-MEC, although the process could take months or years.

Could China retaliate against the U.S.?
It's possible. In the past, China has responded with tariffs on U.S. agricultural and technology products.

Can Congress block these tariffs?
The president has broad authority to impose tariffs under trade laws, so it is difficult for Congress to stop them immediately.

The next few months will be critical for the U.S. economy and its trade relations. While Trump defends the tariffs as a way to strengthen domestic industry, the side effects could hit consumers' pocketbooks and provoke diplomatic tensions.