North America will pay a higher price if Trump`s tariff become norm.

The Wall Street Journal’s chief economic commentator, Ye Weiping, has stated that former U.S. President Donald Trump’s tariff war against Canada and Mexico would lead to significant economic and diplomatic costs for all three North American nations. If these tariffs persist, Canada and Mexico could plunge into a severe economic recession, while the United States risks losing the trust of its closest neighbors. This trade conflict may be the most brutal in global history since the 1930s.

In 2018, Trump replaced the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA), arguing that America’s allies and economic partners were unfairly benefiting at the expense of U.S. wealth and security. His stance on trade was consistent with his broader policies, such as cutting financial aid to Ukraine and reducing support for Western European countries.

Ye Weiping warned that if tariffs on Canada and Mexico remain in place, both nations could face serious economic downturns. Without access to the massive U.S. market, they would be forced into a difficult and painful economic transition in the coming years. What’s worse, Trump has shown interest in undermining their industrial bases. In Canada’s case, the threat is even greater—Trump once suggested that the country could avoid higher tariffs by joining the United States as its 51st state.

For multinational corporations, the U.S. market is simply too large to ignore. Investment bank Goldman Sachs estimates that 70% of the $260 billion in annual tariffs imposed by the U.S. on Canada, Mexico, and China will ultimately be paid by American consumers. Beyond rising prices, some goods could become prohibitively expensive or even unavailable as a result.

**Photo reference: https://knowledge.wharton.upenn.edu/article/nafta-20-years-later-benefits-outweigh-costs/ **