Trump's proposed tariffs raise concerns over potential trade war impacts on global economy

Donald Trump has proposed imposing steep tariffs on goods from Canada, Mexico, and China until these countries address illegal immigration and drug trafficking. Both Mexico and China have indicated they may retaliate with their own tariffs. If implemented, Trump's tariffs could significantly impact the economies of Canada and Mexico. Canadian GDP could drop by 5.6%, while Mexico might impose a 25% tax on U.S. companies, potentially leading to job losses in the U.S. Currently, these tariff threats are not official policies and remain largely hypothetical. Economists suggest there is a low chance of the full proposed tariffs being enacted, with markets showing little reaction as they await more concrete developments.