Trump’s Massive Trade Restrictions on Canada, China and Mexico (Uncut) 03-05-2025

WARNING: Trump’s Massive Trade Restrictions on Canada, China and Mexico Will Increase U.S. Prices

Welcome back, everyone. The single largest trade restrictions imposed by the United States ever on its trade partners just went into effect. Donald Trump’s tariffs on China, Canada, and Mexico became effective March the 4th.

Not to be dramatic, but this is, in fact, a trade war, and the United States’ opponents have already started to respond. China and Canada responded in kind, as expected, and now Mexico is likely to retaliate soon as well. So, clearly, things are going very well.

The Trump administration imposed a 25% tariff on all imports from Mexico, without any exceptions. It imposed a 10% tariff on energy imports from Canada, in addition to a 25% tariff on all other goods produced in Canada and imported into the United States. And for good measure, Trump also doubled down on his tariffs on China that were imposed about a month prior.

So, to help quantify what it means for U.S. consumers, these three countries, which are now under restrictions, they provide about 42% of all goods that are shipped to the United States. What are these goods exactly? Let’s take a closer look. These are U.S. biggest trade partners, so goods from Mexico represent about 15% of all U.S. imports.

Canadian goods are roughly the same, 14% of all imports. China provides 14% of all U.S. imports as well. So, we just started waging a trade war on our top trade partners, in other words.

Now, how does it affect you? What products that you may be used to purchasing are now impacted? By dollar value, this is crude oil, technology such as phones and accessories, computers, vehicles, cars, SUVs, minivans, and trucks, and vehicle parts. So, in case you need to get your car repaired, those parts that are manufactured in Mexico, for example, and then imported into the United States will now get pricier because of these tariffs. There are some of you who defend tariffs because you say, well, this is what we need to bring manufacturing back to the United States as if there are no other ways to do that.

And that might be a long-term game plan if things go as planned and if there are no other obstacles. However, the United States has de-industrialized decades ago. The United States is not capable of producing or manufacturing these items at the same price point that you would like to pay for them because the United States does not have the infrastructure in place, because the cost of labor in the United States is much, much, much higher, as we know well, also because government regulations are a lot less convenient from the standpoint of a manufacturer.

There’s a lot of bureaucracy. So to fulfill this dream, you actually need to overcome these and many other challenges. You also need trained, skilled professionals for engineering, for IT, for research and development, for design, for quality control.

For the most part, and of course, this doesn’t apply to every single person, but for the most part, U.S. students are not pursuing academic excellence in those fields that are needed to manufacture everything here domestically. So we don’t have the industrial base for manufacturing, and we also just imposed out-of-control tariffs on our top importers. What does this mean? It means that U.S. prices on raw materials such as gas, on plastic, steel, fertilizers and groceries, those prices are bound to go up and they will remain high until those tariffs that we just went through, until those tariffs are either removed or until the economy here in the United States transitions into a completely new model from a service based to a manufacturing base, which takes years, if not decades.

So China, Canada and Mexico are not incentivized to export because they now have to pay higher prices. This is when they retaliate because they want to keep the flow of goods going, they want to do business with the United States, but it is no longer as profitable for them. Going one step further, we’re ripping up Ontario’s contract with Starlink.

It’s done, it’s gone. We won’t award contracts to people who enable and encourage economic attacks on our province and our country, alongside federal tariffs and the measures my fellow premiers are bringing forward, this Team Canada’s opening response. The Wall Street Journal reported that Canada has already responded to Donald Trump’s tariffs.

Ontario is issuing a 25% export tax on electricity to the United States. This will impact 1.5 million homes in Minnesota, in Michigan and in New York. Canada’s response affects roughly $21 billion in exports to the United States.

Also, Trump posted this on Truth Social. He effectively said, look, Governor Trudeau, if you dare to retaliate as you just did, I will definitely impose even more tariffs on you. So here’s what Donald Trump said.

Please explain to Governor Trudeau of Canada that when he puts on a tariff on the United States, our reciprocal tariff will immediately increase by a like amount. I discussed reciprocity in great detail last week. So there is a video that explains what it means, why it’s not a good idea and why this will actually escalate this kind of activity and trade wars and reduce economic activity in the long run.

This certainly reminds me of middle school, maybe high school. Is this the way to handle the issue as consumers now have to spend more on their usual purchases? Let us know in the comments below if you feel that this is good. So China has accused the United States of violating the World Trade Organization rules.

China is imposing tariffs on nearly $22 billion worth of U.S. exports, and those are scheduled to begin early next week, so mid-March. As you may recall, if you watched a video that I uploaded several days ago, Treasury Secretary Besson said that Mexico allegedly offered to join the United States in imposing tariffs on China. Whether that is still on the table remains unclear.

He also stated that Canada would join, although I personally think that this is wishful thinking at this point in time, and Canada is unlikely to join the United States in waging an economic war, a trade war against China. With inflation fears resurfacing, imposing tariffs on top importers is arguably a very short-sighted move that hits American consumers directly. If you need to impose tariffs, if you feel that you absolutely must to do this, there are certainly a variety of ways to do it, to approach it.

But in our case, I’d like to draw your attention to the fact that these are non-discriminatory restrictions, meaning all goods are affected. Every single type of a product that is imported from these countries is affected. No goods are excluded from these tariffs.

Additionally, one would also argue that herding trade could have easily been avoided if we tried to use at least some diplomacy in this process. This would save consumers millions of dollars that they would be able to save otherwise, but now have to spend because prices are going to increase as the result of these new restrictions. As always, thank you very much for watching.

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