Day 1 tariffs are bad for everyone — including President Trump

Today, on the day of President-elect Trump’s second inauguration, his proposed Day One actions are beginning to take shape. Axios reports Trump is now weighing immediate tariffs on Canada and Mexico under the guise of a “national economic emergency.” With Canada ramping up its plans for retaliatory tariffs to slam America “dollar for dollar,” cooler heads in the new Trump administration must prevail if Americans are going to be spared the blow to their household budgets. 

Trump understands the practical politics of having leverage over both allies and opponents, but he risks losing all of it in a North American trade war.  

Trump ran in 2024 on his plan to saddle Canada and Mexico with a 25 percent tariff as leverage to get their help on his immigration agenda, but the fact remains that Trump’s voters will be the ones feeling the direct impact. Day 1 tariffs would make February’s Super Bowl the most expensive for consumers in recent history.  

Trump ally and fellow TV star Kevin O’Leary of the hit show Shark Tank has been making the rounds on air, telling Trump to be “hardcore” with tariffs on China. He even suggested China could see “riots in the streets” if Trump targeted China’s consumer exports, which explains the massive influx of Chinese goods into the U.S. in December.  

North America as a trading block is uniquely positioned to thrive during the Trump administration, but instead of promoting growth and lower costs for Americans, framing a destructive trade war is all that’s being discussed. The sophisticated supply chain integration between the U.S. and Canada has resulted in lower prices for consumers, especially when it comes to automobiles. In 2022, Canada exported $12.9 billion in motor vehicle parts and accessories, with $11.4 billion of that flowing directly to the U.S.  

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Free Trade For Us is a single-issue campaign produced by the Consumer Choice Center and supported by partners to raise awareness about the positive impact of free trade and to show policymakers all over the world that the millennial generation is united against tariffs, trade barriers, and retaliatory measures that only hurt consumers and workers.