Trump’s Tariffs Spark Backlash Amid Inflation Fears

President Donald Trump is facing opposition from business groups and members of his own party after imposing steep tariffs on key U.S. trading partners. The new tariffs include 10% on imports from China, 25% on all imports from Mexico and Canada, and 10% on Canadian energy imports, sparking concerns about rising consumer prices and supply chain disruptions.

The Financial Times is reporting that trade associations across industries—ranging from consumer goods and automakers to oil and groceries—warn that these tariffs will increase costs for American families. John Murphy, senior vice president of the U.S. Chamber of Commerce, criticized the move, stating that while addressing border security and fentanyl trafficking is important, tariffs won’t solve these problems and will only burden consumers.

Economists predict that the tariffs could lead to the largest tax increase since the 1990s and deliver a severe shock to the U.S. economy. Kim Clausing, a senior fellow at the Peterson Institute, noted that moving from free trade to a 25% tariff is a major shift that could have widespread economic consequences.

In response, Canada announced retaliatory tariffs of 25% on $107 billion worth of U.S. goods, including food, appliances, and clothing. Mexican President Claudia Sheinbaum is also expected to implement countermeasures.

Trump doubled down on his aggressive trade stance over the weekend, posting on Truth Social that Canada should become “the 51st state”, claiming the U.S. “subsidizes” its economy. His remarks drew swift criticism from lawmakers, including Republican Senators Tim Scott and Rand Paul, who warned that tariffs act as taxes on American consumers and businesses.

Analysts estimate that Trump’s tariff policy could cost the U.S. economy $200 billion over his potential term, drive up inflation, and lead to financial market instability. Investment bank Goldman Sachs predicts that while the tariffs might be temporary, their economic impact could be significant.