So far, President Donald Trump69传媒檚 tariff brinkmanship has worked out well for him. He forced Colombia to bend to his will on repatriating its migrants and brought the leaders of Canada and Mexico rushing back to the table to talk border security.
But what happens should his luck run out? The game Trump is playing could turn American consumers into big losers.
Canada and Mexico won a 30-day reprieve from Trump69传媒檚 threatened 25% tariffs on practically all goods except petroleum products they ship to the United States by agreeing to take action to limit the flow of drugs and illegal border crossers.
Peter Navarro, Trump69传媒檚 trade counselor, said the postponed levies should be viewed as part of 69传媒渁 drug war, not a trade war.69传媒
But they69传媒檙e much more likely to impact the flow of consumer goods than they are drug traffic. That69传媒檚 particularly true of Canada, which is the origin point of just 0.2% of the fentanyl that enters the United States, but $1 trillion of goods and services purchased by American households and manufacturers.
Mexico responded to Trump69传媒檚 threat by rushing 10,000 troops to its border with the U.S. to help curtail illegal crossings that were already dropping sharply under the new administration69传媒檚 immigration crackdown. It ships $480 billion in goods to America.
Such high tariffs risk forcing the auto industry into a downturn and taking the rest of the economy with it and certainly will bring another crushing round of price spikes at grocery stores.
The practice of unfettered trade between the three nations was institutionalized in 1992 with the passage of the North American Free Trade Agreement. The pact was updated and renamed the United States-Mexico-Canada Agreement in 2020, during Trump69传媒檚 first term.
Still to come are the 10% levies set to take effect next week against China, with whom the U.S. does nearly $800 billion worth of trade. They may be much more difficult to forestall.
American consumers are heavily reliant on cheap goods from China, which are sold by discount retailers such as Walmart and online sites such as Temu. If tariffs raise the price of clothing, electronics, appliances, tools and other everyday products it will be a heavy blow to household budgets.
Trump warned Americans they would feel some pain from his tariff diplomacy. But pocketbook pain was not what they expected from a president who on the campaign trail promised to protect them from the devastating inflation that marked the Biden era.
Breaking that vow so early in his presidency carries not only economic risk for the nation, but also political risk for Trump and Republicans. Voters proved in the 2024 election they have long memories when it comes to politicians who inflict financial pain on their families.
