Trump imposes 25% tariffs on Mexican and Canadian goods, boosting U.S. dollar

Donald Trump has announced a trade war against Mexico and Canada, imposing 25% tariffs on their goods. This move aims to curb illegal drug and migrant flows into the U.S. The U.S. dollar has strengthened against both the Mexican peso and Canadian dollar. In addition to the tariffs on North American goods, Trump plans to add a 10% tariff on imports from China. The announcement has raised concerns in Britain, where officials are considering retaliatory tariffs on American products like whiskey and jeans. The FTSE 100 index fell, and the Mexican peso and Canadian dollar hit lows against the U.S. dollar. Analysts warn that these tariffs could increase costs for U.S. consumers significantly, potentially affecting prices for British consumers as well.