Politics
Trump slaps major tariffs on Mexico, Canada and China, setting the stage for trade war
Washington — President Trump slapped sweeping tariffs on goods from Mexico, Canada and China on Saturday, sending shock waves through the global supply chain and sparking fears of a disruptive trade war that could dramatically raise costs for U.S. consumers.
Trump signed executive orders placing duties of 25% on imports from Mexico and Canada, except for a 10% rate on Canadian energy products. He imposed a 10% tax on all imports from China.
The White House said the tariffs would go into effect on Tuesday, and could be raised if the targeted countries retaliate with tariffs of their own, as they have threatened. In a post on Truth Social, the president said he was taxing imports from those countries because he blames them for the flow of undocumented immigrants and drugs into the United States.
The three nations are America’s top trading partners, supplying the U.S. with food, medicine, oil, cars, timber and electronics.
Employees work in a Honda car plant in 2014, in Celaya, in the central Mexican state of Guanajuato.
(Eduardo Verdugo / Associated Press)
The tariffs against Canada and Mexico upend a trade pact that dates back three decades and is the linchpin of many tightly integrated industries across North America. Trump himself signed the newest version of the trade accord during his first term, praising the 2020 U.S.-Mexico-Canada-Agreement as “the fairest, most balanced and beneficial trade agreement we have ever signed into law.”
The tariffs threaten to deeply disrupt the economies of Mexico, Canada and China and drive up consumer prices in the U.S.
Experts say some effects will be significant and quickly felt, with American consumers likely finding higher prices for fresh vegetables and fruits and other perishable imports in a matter of days.
“Foreigners don’t pay the tariffs, American businesses and consumers do,” said Jock O’Connell, a trade expert at Beacon Economics, a Los Angeles-based research firm.
Americans are still smarting from a surge of food prices in the wake of the pandemic. High inflation was widely considered an important factor in Trump’s election, and the president has promised to bring down prices for groceries and other goods. But these new tariffs are almost certain to do the opposite, economists say.
The U.S. imports more than $900 billion of products from Canada and Mexico, and a 25% tariff is huge given that goods have crossed North American borders duty-free for many years.
“Is the Trump administration comfortable with hiking the price of avocados and guacamole ahead of the Super Bowl?” said Joseph Brusuelas, chief economist at the accounting firm RSM US, adding that he was not joking.
For many other products, prices may start to increase only as inventories are depleted. Car prices will almost surely rise. U.S. auto manufacturing is so interlinked with Mexico and Canada, with parts going back and forth across borders many times, that analysts say they’re not really American cars but North American cars.
Michigan Gov. Gretchen Whitmer condemned the tariffs and the effect they would have on the auto industry in her state, which Trump flipped in 2024: “A 25 percent tariff will hurt American auto workers and consumers, raise prices on cars, groceries, and energy for working families and put countless jobs at risk. Trump’s middle-class tax hike will cripple our economy and hit working-class, blue-collar families especially hard.”
Gas prices may also rise, especially in the Great Lakes and Rocky Mountain West, which depend on Canadian oil. Trump has repeatedly talked about bringing down the cost of gas, but the U.S. still imports billions of dollars of crude — and ramping up domestic production isn’t so easy or quick.
Steam rises at Suncor’s oil sands facility near Fort McMurray, Canada, in September 2023.
(Victor R. Caivano / Associated Press)
The 10% tariffs on China will add to 10% to 25% duties that Trump imposed on many Chinese imports during his first term, and which former President Biden kept in place. That will hit American household pocketbooks broadly because China is such a big supplier of consumer items.
Under the U.S.-Mexico-Canada trade agreement, any country has the right to pull out at any time. And a U.S. president can impose new tariffs without approval from Congress by invoking the International Emergency Economic Powers Act, which authorizes executive action to counter threats to national security, foreign policy or the economy.
Trump had been warning for months that he planned to impose tariffs on imports in a bid to lure manufacturing back to the United States. Campaigning before the November election, he vowed at one point to establish an across-the-board tax of 10% or 20% on all goods entering the U.S. At another, he threatened a 200% tariff on vehicles from Mexico.
“Come make your product in America,” he told companies in a speech at the World Economic Forum earlier this year. If not, he said, “then very simply you will have to pay a tariff.”
But Trump sees tariffs also as a negotiating tactic to extract compromises from other nations on matters that have little to do with trade.
His executive order imposing tariffs against Canada blames the country for “failing to devote sufficient attention and resources or meaningfully coordinate with United States law enforcement partners to effectively stem the tide of illicit drugs.”
He has said that Mexico must suffer tariffs because it hasn’t done more to stop migrants from reaching the U.S. border.
But experts questioned Canada and Mexico’s ability to further curb drug and people smuggling. A 2022 report commissioned by the U.S. Congress found that “Canada is not known to be a major source of fentanyl, other synthetic opioids or precursor chemicals to the United States, a conclusion primarily drawn from seizure data.”
Others said the tariffs have the potential to spur more migration.
Economies in Mexico and Canada rely much more heavily on the U.S. than the other way around, and the threat of tariffs has made the peso and Canadian dollar very volatile in recent weeks.
The value of Mexico’s exports and imports amounts to almost 90% of the country’s gross domestic product, according to World Bank data. Economists warn that even a small increase in tariffs on goods destined to the U.S. poses serious risks for the economy.
“Under the worst-case scenario, the Mexican economy will fall into recession, the currency will depreciate, and inflation will rise,” reads a report released by the economic research firm Moody’s Analytics.
Analysts say that if tariffs drag down the Mexican economy, more Mexican workers without proper documentation will seek to enter the U.S. “If Mexico goes into a recession, you’ll see a surge in immigration,” said economist Brusuelas.
Migrants make their way to a Border Patrol van after crossing illegally and waiting to apply for asylum between two border walls separating Mexico and the United States on Jan. 21 in San Diego.
(Gregory Bull / Associated Press)
Evan Ellis, a research professor of Latin American studies at the U.S. Army War College’s Strategic Studies Institute, described tariffs as a “catastrophic risk.”
“If you essentially deep-six the Mexican economy … there are people who are going to once again flow across the U.S. border,” he said.
The country’s economy is already on shaky ground. Mexico faces its largest budget deficit since the 1980s. Data show 36% of the population lives in poverty with 7% living in extreme poverty.
A severe recession in Mexico in the 1990s contributed to some 5 million Mexicans immigrating to the U.S.
Mexican President Claudia Sheinbaum has insisted that Mexico has a plan to counter tariffs.
“We are prepared for any scenario,” she told journalists on Friday, although she said that Mexico had been “doing everything in our power” to prevent tariffs. “What do we want? That dialogue with respect prevails.”
Canadian officials have also promised an aggressive response.
“Being smart means retaliating where it hurts,” said Chrystia Freeland, the former finance minister who represented Canada in USMCA negotiations. “Our counterpunch must be dollar-for-dollar — and it must be precisely and painfully targeted: Florida orange growers, Wisconsin dairy farmers, Michigan dishwasher manufacturers, and much more.”
If China, Canada and Mexico retaliate by slapping tariffs on American products entering their markets, that will very likely slow the volume of trade. The ripple effects will be felt across the entire supply chain, hurting business and employment at ports, warehouses and other logistics and transportation operations.
Higher inflation from tariffs may hit Los Angeles especially hard coming soon after the fires, which appear to be pushing up prices for rents and other services and products.
“The timing couldn’t be worse. It will make for a double whammy for Southern California,” said Sung Won Sohn, professor of finance and economics at Loyola Marymount University.
During his first term, Trump in 2018 imposed tariffs on steel from Mexico and other countries, prompting counter-tariffs on American farm goods and straining U.S.-Mexico relations.
At the time, he also threatened broader tariffs on all Mexican goods, but he eventually backed off after American business leaders complained that it would hurt them and his administration extracted a promise from Mexican authorities to do more to stop migrants from reaching the U.S. border.
Marcelo Ebrard, Mexico’s economy secretary, suggested last year that the only goal of tariffs is to achieve political gains, given the makeup of the highly integrated global economy.
“The United States economy is not a manufacturing economy,” said Ebrard. “And I’m sorry, but it will not be that way again.”
Linthicum reported from Albuquerque, N.M., and Lee reported from Washington.
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By Shawn Paik
April 22, 2026
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Sparks flew on Capitol Hill as Sen. Elizabeth Warren, D-Mass., accused Federal Reserve nominee Kevin Warsh of being a potential “sock puppet” for President Donald Trump.
Warsh, tapped by Trump in January to lead the Federal Reserve, faced a two-and-a-half-hour confirmation hearing before the Senate Banking, Housing, and Urban Affairs Committee.
If confirmed, he would take the helm of the world’s most powerful central bank, shaping interest rates, borrowing costs and the financial outlook for millions of American households for the next four years.
WHO IS KEVIN WARSH, TRUMP’S PICK TO SUCCEED JEROME POWELL AS FED CHAIR?
Kevin Warsh, nominee for chairman of the Federal Reserve, listens to ranking member Sen. Elizabeth Warren, D-Mass., make an opening statement during his Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Tuesday, April 21, 2026. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
In her opening remarks, Warren sharply criticized Warsh’s record and questioned his independence, arguing he is “uniquely ill-suited for the job as Fed chair” and warning he could give Trump influence over the central bank.
She accused Warsh of enabling Wall Street during the 2008 financial crisis, which fell during his tenure as a Federal Reserve governor when he served from 2006 to 2011.
“In our meeting last week, we discussed the 2008 financial crash, where 8 million people lost their jobs, 10 million people lost their homes and millions more lost their life savings,” Warren said. “Giant banks, however, got hundreds of billions of dollars in bailouts… and he said to me that he has no regrets about anything he did.”
She added that Warsh “worked tirelessly to arrange multibillion-dollar bailouts” for Wall Street CEOs, with nothing for American families.
The hearing grew more tense as Warren pivoted to ethics concerns, pressing Warsh over his undisclosed financial holdings and questioning him over links to business dealings connected to the late convicted sex offender Jeffrey Epstein.
The two spoke over each other and raised their voices in a heated exchange on Capitol Hill.
WARSH’S $226 MILLION FORTUNE UNDER SCRUTINY AS FED NOMINEE FACES SENATE CONFIRMATION
Sen. Elizabeth Warren: The Fed has been plagued by deeply disturbing ethics scandals in recent years. It’s critical that the next chair have no financial conflicts — none. You have more than $100 million in investments that you have refused to disclose. So let me ask: do the Juggernaut Fund or THSDFS LLC invest in companies affiliated with President Trump or his family, companies tied to money laundering, Chinese-controlled firms, or financing vehicles linked to Jeffrey Epstein?
Kevin Warsh: Senator, I’ve worked closely with the Office of Government Ethics and agreed to divest all of my financial assets.
Warren: Could you answer my question, please? You have more than $100 million in undisclosed assets. Are any of those investments tied to the entities I just mentioned? It’s a yes-or-no question.
Warsh: I have worked tirelessly with ethics officials and agreed to sell all of my assets before taking the oath of office.
Warren: Are you refusing to tell us if you have investments in vehicles linked to Jeffrey Epstein? You just won’t say?
Warsh: What I’m telling you is those assets will be sold if I’m confirmed.
Warren: Will you disclose how you plan to divest these assets? The public might question your motives if, for example, someone who profits from predicting Fed policy cuts you a $100 million check as you take office.
Sen. Elizabeth Warren questions Kevin Warsh during his Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Tuesday, April 21, 2026. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Warsh: I’ve reached a full agreement with the Office of Government Ethics and will divest those assets before taking the oath.
Warren: I’m asking a very straightforward question. Will you disclose how you divest those assets?
Warsh: As I’ve said, I’ve worked with ethics officials.
Warren: I’ll take that as a no.
In a separate exchange, Warren invoked Trump’s past statements about the Fed and challenged Warsh to prove his independence in real time.
She insisted that Warsh answer whether he believes Trump won the 2020 presidential election and if he would name policies of the president with which he disagrees. The hopeful future Fed chair dodged the question and said he would remain apolitical, if confirmed.
THE ONE LINE IN WARSH’S TESTIMONY SIGNALING A BREAK FROM THE FED’S STATUS QUO
Warren: Donald Trump has made clear he does not want an independent Fed. He has said, “Anybody that disagrees with me will never be Fed chairman.” He’s also said interest rates will drop “when Kevin gets in.” Let’s check out your independence and your courage. We’ll start easy. Mr. Warsh, did Donald Trump lose the 2020 election?
Warsh: Senator, we should keep politics out of the Federal Reserve.
Warren: I’m asking a factual question.
Warsh: This body certified the election.
Warren: That’s not what I asked. Did Donald Trump lose in 2020?
Warsh: The Fed should stay out of politics.
Warren: In our meeting, you said you’re a “tough guy” who can stand up to President Trump. So name one aspect of his economic agenda you disagree with.
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Kevin Warsh listens to a question during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing on Tuesday, April 21, 2026. (Graeme Sloan/Bloomberg via Getty Images)
Warsh: That’s not something I’m prepared to do. The Fed should stay in its lane.
Warren: Just one place where you disagree.
Warsh: I do have one disagreement — he said I looked like I was out of central casting. I think I’d look older and grayer.
Warren: That’s adorable. But we need a Fed chair who is independent. If you can’t answer these questions, you don’t have the courage or the independence.
On March 28, a sunny Saturday in southwestern Utah, Jack Hoopes and his wife, Lorna, brought their homemade signs to the local “No Kings” rally.
The couple joined a crowd of 1,500 or so marching through the main picnic area of a park in downtown St. George. Their signs — cut-out words on a black background — chided lawmakers for failing to stand up to President Trump and urged America to “make lying wrong again.”
After about an hour, the two were ready to go home. They got in their silver Volvo SUV, but before pulling away, Jack Hoopes decided to swing past the demonstration, which was still going strong. He tooted his horn, twice, in a show of solidarity.
That’s when things took a curious turn.
A police officer parked in the middle of the street warned Hoopes not to honk; at least that’s what he thinks the officer said as Hoopes drove past the chanting crowd. When he spotted two familiar faces, Hoopes hit the horn a third time — a friendly, howdy sort of honk. “It wasn’t like I was being obnoxious,” he said, “or laying on the horn.”
Hoopes turned a corner and the cop, lights flashing, pulled him over. He asked Hoopes for his license and registration. He returned a few moments later. A passing car sounded its horn. “Are you going to stop him, too?” Hoopes asked.
That did not sit well. The officer said he’d planned to let Hoopes off with a warning. Instead, he charged the 71-year-old retired potato farmer with violating Utah’s law on horns and warning devices. He issued a citation, with a fine punishable up to $50.
Hoopes — a law school graduate and prosecutor in the days before he took up potato farming — is fighting back, even though he estimates the legal skirmishing could cost him considerably more than the maximum fine. The ticket might have resulted from pique on the officer’s part. But Hoopes doesn’t think so. He sees politics at play.
“I’ve beeped my horn for [the pro-law enforcement] Back the Blue. I’ve beeped my horn for Black Lives Matter,” Hoopes said. “I’ve seen a lot of people honk for Trump and for MAGA.”
He’s also seen plenty of times when people honked their horns to celebrate high school championships and the like.
But Hoopes has never heard of anyone being pulled over, much less ticketed, for excessive or unlawful honking. “I think it’s freedom of expression,” he said.
Or should be.
Jack and Lorna Hoopes made their own protest signs to bring to the “No Kings” rally in St. George, Utah.
(Mikayla Whitmore / For The Times)
St. George is a fast-growing community of about 100,000 residents set amid the jagged red-rock peaks of the Mojave Desert. It’s a jumping-off point for Zion National Park, about 40 miles east, and a mecca for golf, hiking and mountain-bike riding.
It’s also Trump Country.
Washington County, where St. George is located, gave Trump 75% of its vote in 2024, with Kamala Harris winning a scant 23%. That emphatic showing compares with Trump’s 59% performance statewide.
St. George is where Hoopes and his wife live most of the time. When summer and its 100-degree temperatures hit, they retreat to southeast Idaho. The couple get along well with their neighbors in both places, Hoopes said, even though they’re Democrats living in ruby-red country. It’s not as though they just tolerate folks, or hold their noses to get by.
“Most of my friends are conservative,” Hoopes said. “Some of the Trump people are very good people. We just have a difference of opinion where our country is going.”
He was speaking from a hotel parking lot in Arizona near Lake Havasu while embarked on an annual motorcycle ride through the Southwest: four days, a dozen riders, 1,200 miles. Most of his companions are Trump supporters, Hoopes said, and, just like back home, everyone gets on fine.
“Right?” he called out.
“No!” a voice hollered back.
Actually, Hoopes joked, his charitable road mates let him ride along because they consider him handicapped — his disability being his political ideology.
Hoopes is not exactly a hellion. In 2014, he and his wife traveled to Africa to participate in humanitarian work and promote sustainable agriculture in Kenya and Uganda. In 2020, they worked as Red Cross volunteers helping wildfire victims in Northern California.
Virtually his entire life has been spent on the right side of the law, though Hoopes allowed as how he has racked up a few speeding tickets over the years. (His career as a prosecutor lasted four years and involved three murder cases in the first 12 months before he left the legal profession behind and took up farming.)
He’s never had any problems with the police in St. George. “They seem to be decent,” Hoopes said.
A department spokesperson, Tiffany Mitchell, said illicit honking is not a widespread problem in the placid, retiree-heavy community, but there are some who have been cited for violations. She denied any political motivation in Hoopes’ case.
“He must’ve felt justified,” Mitchell said of the officer who issued the citation. “I can’t imagine that politics had anything to do with it.”
And yes, she said, honking a horn can be a political statement protected by the 1st Amendment. “But, just like anything else, it can turn criminal,” Mitchell said, and apparently that’s how the officer felt on March 28 “and that’s the direction he took it.”
The matter now rests before a judge, residing in a legal system that has lately been tested and twisted in remarkable ways.
Jack Hoopes’ case is now before a judge in St. George, Utah.
(Mikayla Whitmore / For The Times)
As he left an initial hearing earlier this month, Hoopes said his phone pinged with a fresh headline out of Washington. Trump’s Justice Department, it was reported, was asking a federal appeals court to throw out the convictions of 12 people found guilty of seditious conspiracy for their roles in the Jan. 6, 2021, insurrection.
“We have a president that pardons people that broke into the Capitol and defecated” in the hallways and congressional offices, Hoopes said. “Police officers died because of it, and yet I get picked up for honking my horn?”
Hoopes’ next court appearance, a pretrial conference, is set for July 15.
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