Trump's tariff plan threatens USMCA and could raise prices for American consumers

President-elect Donald Trump plans to impose tariffs of 25% on imports from Canada and Mexico, starting on his first day in office. This move could significantly raise prices for American consumers and jeopardize the US-Mexico-Canada Agreement (USMCA), which took effect in 2020. Trump's tariffs aim to pressure these countries to address illegal immigration and drug trafficking. Economists warn that such tariffs could lead to increased costs for U.S. households, with estimates suggesting an annual impact of over $2,600 per family. Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have responded to Trump's threats. Trudeau emphasized the importance of cooperation, while Sheinbaum cautioned against starting a trade war, advocating for mutual understanding instead.