As someone from the African diaspora watching from a distance, Trump’s latest tariff wave feels like a thunderclap in an already tense world. On March 4, 2025, U.S. President Donald Trump rolled out a 25% tariff on Canadian and Mexican imports, a 10% duty on Canadian energy, and a 20% tariff on Chinese goods, a sharp escalation in America’s ongoing trade battles. It’s bold, it’s disruptive, and it’s got leaders from Ottawa to Beijing scrambling.
But what does it actually mean? Is this just tough business, reckless policy, or something in between? And beyond the political shouting, what should countries—and everyday people—do instead of just reacting? Let’s break it down.
The Tariffs: What’s Happening?
Trump’s move was anything but subtle. Canada and Mexico, America’s closest trade partners under USMCA, now face a 25% tax on everything from lumber to avocados. Canadian oil and gas got a milder 10% tariff, while China saw its duties jump to 20%, yet another hit in an ongoing trade war. The justification? Trump ties it to fentanyl and illegal migration, branding it a national emergency measure.
These are not small numbers, $2.2 trillion in annual trade is now at stake. And countries are not staying quiet. When Trump taxes Canadian lumber, it doesn’t just hurt sawmills in British Columbia, it raises the cost of U.S. homes. When China targets Iowa soybeans, it’s not just farmers who suffer, it is grocery bills in Nairobi and Manila, tied to global food prices.
- Canada struck back immediately with a 25% tariff on $20 billion worth of U.S. goods—think bourbon, beer, and appliances—starting March 4, with a second wave ($86 billion) targeting cars, steel, and beef in three weeks.
- Mexico’s President Claudia Sheinbaum has promised retaliation, with details dropping soon.
- China hit back too, adding 10-15% tariffs on U.S. agricultural products like dairy and cotton, while also taking the fight to the World Trade Organization (WTO).
It’s a tit-for-tat trade war, and the whole world is watching.
Who Wins, Who Loses? The Real Cost of Tariffs
Tariffs are like tossing a rock into a pond, the ripples hit everyone.
The Tax Foundation estimates that Trump’s Canada-Mexico tariffs could:
- Shrink U.S. GDP by 0.2%
- Cut 223,000 jobs
- Lower after-tax incomes by 0.6% (before retaliation even kicks in)
When Canada and Mexico respond, Brookings warns that all three economies will suffer with higher costs, lost exports, and supply chain issues. U.S. consumers will pay about $1,000 more per household each year for things like groceries and cars, according to Nationwide Mutual.
Canada and Mexico will also be affected. With 78% of Canada’s exports and 83% of Mexico’s exports going to the U.S., they will lose a lot. Meanwhile, China’s targeted tariffs on U.S. farm goods aim directly at Trump’s rural supporters. Its tariffs on U.S. farm goods are a chess move, not a checkmate. Beijing knows Trump’s rural base can’t stomach another trade war.
The stock market is also impacted. Nasdaq has entered correction territory, and automakers like Ford and GM are preparing for more expensive parts.
Honda’s Move: Smart or Forced?
However, there is some good news. On March 3, 2025, Honda announced they are moving Civic production from Mexico to Indiana to avoid the 25% tariff. This means real jobs moving to the U.S., which Trump can highlight as a win. It’s not exactly “bringing jobs back,” but it’s strategic maneuvering under pressure. For factory workers, it’s a paycheck.
Honda moving Civic production from Mexico to Indiana is not about nostalgia; it’s about numbers. A 25% tariff on a $25,000 car adds $6,250, which either gets passed to buyers or cuts into profits. By moving to the U.S., Honda avoids the tariff, keeps costs competitive, and gives Trump a PR win. Indiana is happy because jobs at the Greensburg plant mean paychecks. But it’s not like Honda is “coming back”—they’ve been in the U.S. since the ’80s. It’s a strategic move, not a homecoming.
Canada’s Fight: A Measured Counterattack
Canada is not just reacting; it’s planning. Trudeau’s $20 billion first-wave tariffs are similar to Canada’s 2018 strategy when Trump targeted steel. Back then, Canada pushed back and won some concessions. This time, they’re using the same approach, hoping to pressure the U.S. into backing down.
The second wave of tariffs, worth $86 billion, raises the stakes by targeting industries in swing states—cars, steel, and pork. Some provinces are also making symbolic moves—Ontario is removing American liquor from shelves, and British Columbia is banning alcohol from Republican-led states.
Trump’s response? More tariff threats. The 30-day pause agreement from February 2, meant to ease tensions, quickly fell apart. Now, both sides are preparing for escalation.
Are These Tariffs Smart Policy or Just Political Theater?
Tariffs are not new. Trump imposed $380 billion worth in 2018-19, Biden kept most of them, and history is full of trade fights. They’re blunt and messy tools, but common.
Trump’s reasoning? Stopping fentanyl and securing borders. But if that’s the goal, why target tomatoes instead of the actual drug routes? Critics, including Trudeau, call it “economic self-sabotage,” arguing it will raise U.S. prices and kill jobs. The Yale Budget Lab estimates U.S. households will lose $1,170 yearly, far from the “lower costs” Trump promised.
So, are tariffs evil? No. Are they effective? That’s debatable.
What Should Countries Do Instead of Just Complaining?
Trade wars hurt everyone. Instead of constant retaliation, leaders should:
Form Alliances: Canada and Mexico working together gives them more leverage.
Diversify Exports: Canada and Mexico rely too much on the U.S. They should build new trade partnerships in Asia, Africa, and Europe.
Negotiate, Don’t Just Tariff: Mexico’s planned call with Trump is smart—talking is better than taxing.
Strengthen Local Industry: Use tariff revenue to invest in self-sufficiency instead of just reacting.
The Big Picture: Trade’s Not War—It’s Strategy
From my vantage point, this echoes old colonial trade games—big powers flex, smaller ones adjust. Trump’s tariffs are not “evil,” but they’re a risky gamble; jobs vs. inflation, security vs. economic chaos. Canada’s counterpunch? Not wrong—just survival.
The real question isn’t “fight or accept?”—it’s “what’s the smartest play?” Americans shouldn’t “fight” Trump, they should ask for clarity: are these tariffs about jobs or ego? Bipartisan support could bring order and focus. Countries like Canada shouldn’t just copy the U.S., they should be smarter, diversify, and negotiate. Honda’s move shows companies understand, governments need to catch up.
Because trade, when done right, lifts us all.
