Canada, Mexico and China.

They owe us a lot of money and I'm sure they're going to pay.

Trump is imposing a 25% tariff on nearly all goods from Canada and Mexico and an additional 10% on imports from China.

Mexico's president negotiated with Trump at the last minute, putting the tariffs on Mexico on hold for a month.

Meanwhile, Canada is planning retaliation.

Canada will be responding to the U.S. trade action with 25% tariffs.

Here's how Trump's new tariffs are different and why many economists and politicians say you, the consumer, might have to pay the price.

To measure the impact, let's look at the numbers.

The U.S. imported roughly $893 billion worth of goods from Mexico and Canada in 2023.

Nearly all of those imports will now have a 25% tariff, meaning if an American importer wants one of their goods, they'll have to pay that tariff to the U.S. government.

Consumers will likely notice this quite quickly in the cost of fresh produce at the grocery store.

Almost all of America's raspberry, strawberry and avocado supply comes from Mexico, as well as most of the country's supply of beer and tequila and mezcal.

On the other side, the U.S. gets about 80% of its frozen French fries, 70% of its lumber and 60% of its maple syrup from Canada.

It's really a big deal because at the moment we really don't have tariffs on any goods coming from Mexico and Canada under the free trade agreements that we have in North America.

In fact, 99% of America's natural gas imports come from Canada.

On February 1st, Trump announced a 10% tariff on Canada's energy products.

Trump's tariffs risk pushing Mexico and Canada into recession, as both nations send 80% of their exports into the U.S.

But Canada is planning precision strikes against U.S. exports.

And the impact of that could be contrary to what Trump claims.

The tariffs are going to make us very rich and very strong.

Since Canada has a much smaller economy, it can pose the same impact on the U.S.

But Canada is betting that if it causes enough disruption,

Trump, who campaigned on lowering prices after a period of elevated inflation, will back down.

Like the American tariffs, our response will also be far-reaching and include everyday items such as American beer, wine and bourbon.

Mexico's president struck a deal with Trump for a one-month pause on U.S. tariffs on Mexico.

In return, she agreed to deploy 10,000 Mexican soldiers to the border to fight fentanyl trafficking.

China also signaled that it's eager to get trade talks going with Trump.

While it's unclear what will happen next, experts say a trade war between the U.S.

and its largest trading partners would hit U.S. income, hurt employment and increase inflation.

So if all of that is true, why is Trump so keen to use tariffs?

Number one is the people that are poured into our country so horribly and so much.

Number two are the drugs, fentanyl and everything else that have come into the country.

And number three are the massive subsidies that we're giving to Canada and to Mexico in the form of deficits.

I think most people do see Trump using these tariffs as a bargaining tool.

He wants something out of Canada and Mexico.

The White House said the duties would remain in place until Mexico, Canada and China stop fentanyl smuggling and illegal migration.

But there are some industries that might benefit.

The U.S. steel industry and domestic aluminum producers have been asking Trump to raise more tariffs against imported steel and aluminum.

They say Mexican factories have been dumping a lot of very low cost steel and aluminum in the U.S.

against commitments that Mexico has made over the years and that those low cost imports have undermined U.S. producers who have higher costs and forced them to idle or close factories.

It's unclear how long Trump plans to leave these tariffs on.

Some experts say that decision will be the biggest measure of its impact.

If the companies feel that Trump is just leaving these on short term in order to get something out of Canada and Mexico, they're not going to rip up their manufacturing footprint.

At the center of all of this is the U.S.-Mexico-Canada agreement.

Our own Wall Street Journal reporting has shown that some of Trump's aides say that he's actually pushing both Mexico and Canada to renegotiate the free trade agreement that we do have.

And these tariffs on Canada, Mexico and China might just be the beginning.

Eventually we're going to put tariffs on chips. We're going to put tariffs on oil and gas.

We're going to be putting tariffs on steel and aluminum and ultimately copper.

We also expect to see some confusion and probably delays at the borders.

We could see goods backing up in warehouses as different trading partners try to sort through the new rules.

So all of that is probably ahead in the coming days and weeks.

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