U.S. stocks plunged 📉 Friday as former President Donald Trump reignited trade fears with plans to impose tariffs on key allies like Canada, Mexico, and the EU. Analysts warn of inflation spikes, market chaos, and a global trade shakeup.
What’s in the Tariff Toolkit?
Starting February 1, a 25% tax will hit imports from Canada and Mexico, targeting chips, steel, and aluminum. Oil and gas could face tariffs by mid-February, though Canadian crude might get a lower 10% rate. 🇺🇸🛢️
Retaliation Plans Heating Up
Canada PM Justin Trudeau vowed a \"forceful but reasonable\" response, with possible tariffs on Florida orange juice 🍊. Mexico’s President Claudia Sheinbaum hinted at multiple contingency plans, warning of U.S. job losses and higher consumer prices. 🇲🇽⚖️
Economic Ripple Effects
The IMF warns Trump’s policies could fuel inflation 🚀 and disrupt global supply chains. Experts say U.S. households might pay more for gas, groceries, and electronics, while businesses brace for trade realignments. \"These tariffs tax America first,\" said Canadian Chamber of Commerce’s Matthew Holmes.
Global Markets on Edge
Researcher Liu Ying from Renmin University predicts U.S. inflation could hit 3%, forcing the Fed to rethink rates. 🌐💸 Countries may pivot to low-tariff partners, reshaping trade flows and sparking market volatility.
