In a controversial move, U.

The decision, announced on Saturday, marks a significant escalation in global trade tensions, with experts warning of severe economic consequences.

The Republican president defended the tariffs as necessary "to protect Americans," linking them to his long-standing demands for stricter immigration controls and action against the illicit fentanyl trade. However, the decision has already led to retaliatory measures from Canada and Mexico, while China is expected to follow suit.

Trump Declares Economic Emergency To Justify Tariffs

By invoking an economic emergency, Trump has authorized a 10% tariff on all Chinese imports and a 25% tariff on imports from Mexico and Canada. Additionally, energy imports from Canada, including oil, natural gas, and electricity, will face a 10% duty. The executive order also contains a provision to increase tariffs further if these countries retaliate, raising concerns about an extended trade war.

The move comes just two weeks into Trump's second term and could significantly impact inflation, a key issue for American voters. Higher tariffs typically lead to increased prices for consumers, particularly for essential goods such as food, fuel, housing, and automobiles. An analysis by the Budget Lab at Yale predicts that the tariffs could cost the average U.S. household an estimated $1,170 per year.