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Trump’s 25% Tariffs on Mexico and Canada: A Contradictory Economic Decision

4 min readFeb 3, 2025

Today, Donald Trump is set to impose 25% tariffs on Mexico and Canada, America’s closest trading partners. His administration claims this move will protect U.S. industries and boost the economy, but in reality, it’s a reckless policy that will raise prices, fuel inflation, and disrupt critical supply chains.

Trump has built his campaign around mass deportations and aggressive tariffs, arguing they will “put America first” by revitalizing domestic manufacturing. However, he has also promised to bring prices down, a blatant contradiction, as tariffs almost always lead to higher consumer costs. Despite unemployment being at 4.2% and inflation on the decline since 2022, Trump has declared an economic emergency to justify his policies (U.S. Bureau of Labor Statistics). Yet, the argument that tariffs will benefit U.S. industry and government revenue doesn’t hold under his administration.

U.S. Unemployment Rate (2020–2025): A sharp spike in 2020 due to the COVID-19 pandemic was followed by a steady decline, stabilizing at historically low levels since the pandemic in 2023 and 2024. (Source: U.S. Bureau of Labor Statistics)

The Reality of Tariffs: Higher Costs, Not More Jobs

Not all industries can simply be relocated to the U.S. Many rely on raw materials that are either unavailable or scarce domestically, such as key minerals essential for manufacturing. Even if these materials exist on U.S. soil, scaling up domestic production would be costly, pushing prices even higher…

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