Donald Trump has occupied the role of President of the United States for approximately a month and a half now. In that time, he has taken a record amount of actions, issuing executive order after executive order in keeping with promises he made during his candidacy. 

Recently, Trump’s plan to improve the American economy started into action. New 25% tariffs on imports from Mexico and Canada, as well as an additional 10% on Canadian energy exports, took effect on Tuesday, March 4 (NPR). The effects of this action were seen immediately. Let’s examine the consequences of imposing on the country’s three most valuable trade partners and the credibility of Trump’s bold statement that this imposition on foreign trade will ultimately benefit the American economy.

Quite ironically, this supposed “hail mary” for the US economy had very adverse effects. At 10am on the morning the tariffs went into action, the Dow Jones fell from 43,900 to 42,300 points, a drastic fall of 1,600 points since the night before. The Dow Jones Industrial Average is the biggest and most trusted stock company. Made up of the 30 largest companies in the United States, it is the best indicator of changes in the economy. While the Dow Jones fluctuates daily, a substantial shift like this following a presidential announcement is very telling and should not be overlooked.

The US stock market is not the only thing we must consider when discussing the consequences of these new trade policies. Foreign relations are a very real concern currently. Ahead of his recent resignation, Canadian Prime Minister Justin Trudeau, announced publicly that Trump’s tariffs are “a very dumb thing to do,” noting that although he frequently disagrees with The Wall Street Journal, he agrees with them in questioning Trump’s newest presidential action. 

Both Trudeau and China’s foreign affairs ministry are of the mindset that the trade war waged by America must be fought back. A statement from China reads, “If war is what the US wants…we’re ready to fight until the end” (BBC). All three countries have made retaliation threats; Canada hit back with an equal 25% tariff, and China announced an additional levy reaching 15% on certain US imports (Reuters). Mexican President Claudia Sheinbaum made promises to announce her retaliation plan this weekend.

Even from a non-financial standpoint, these tariffs are harmful to America’s foreign friendships. Canada and the United States have been particularly close allies for a very long time, fighting together on many different fronts. However, this recent tariff has broken the trust between the two countries and torn that alliance apart.

Trudeau left a chilling statement directed toward the American people. “We don’t want this. We want to work with you as a friend and ally. And we don’t want to see you hurt either. But your government has chosen to do this to you.”