Trump tariffs usher in new era of protectionism

Subscribe to enjoy similar stories. The U.S. economy entered a new era at 12:01 a.m.

Tuesday, as President Trump’s tariffs on imports from Mexico and Canada took effect. The new tariffs on imported goods ended decades of free trade among the three countries, and stood to disrupt entire industries. The 25% tariffs will be levied on imports from Mexico and Canada, with the exception of energy products such as crude oil and natural gas, which will be tariffed at 10%.

Canada said it would impose retaliatory tariffs. If the tariffs remain in place, they have the potential to profoundly reshape relations between the U.S. and two of its biggest trading partners, abruptly reversing America’s decadeslong project of expanding free trade with its allies.

The three countries had been operating under a revised free-trade agreement Trump brokered during his first term. Beyond tariffs on Mexico and Canada, Trump on Monday signed an executive order imposing an additional 10% tariff on China, on top of the 10% tariff that went into effect last month. That change was also effective on Tuesday, just after midnight.

The Trump administration has cited the flow of drugs and undocumented immigrants across the U.S. border as justification for tariffs. Trump also has said that tariffs would lead to more manufacturing in the U.S.

​​“So they’re going to have a tariff, and what they have to do is build their car plants, frankly, and other things, in the United States, in which case you have no tariffs," he said Monday. Uncertainty is already affecting the economy by slowing business orders and making it harder for companies to plan. This comes as the economy is hit by other forces, including mass layoffs of federal workers, cutbacks to