In a surprising move, President Donald Trump has announced plans to slap 25% tariffs on goods from Mexico and Canada starting February 1. This bold step could shake up North American trade and potentially lead to higher prices for everyday items in the U.S. The announcement came during a signing ceremony at the Oval Office on Monday evening. While Trump is expected to roll out a broader trade policy soon, this initial action focuses on imposing steep tariffs on two of America’s closest trading partners. The move aligns with his campaign promises to use tariffs as a tool to protect American workers and industries. During his first term, Trump imposed heavy tariffs on Chinese goods, which were largely kept in place by the Biden administration. Now, he’s turning his attention to Mexico and Canada, proposing a 25% tax on their imports. This could affect everything from electronics and toys to food and transportation equipment. But here’s the catch: tariffs are typically paid by U.S. companies that import goods, and those costs often trickle down to consumers. Experts warn that this could mean higher prices for everyday items, from sneakers to groceries. Research from the Peterson Institute for International Economics suggests that American households might feel the pinch as businesses pass on the added costs. Trump, however, insists that foreign countries will foot the bill, not American consumers. He even floated the idea of creating a new government office, the “External Revenue Service,” to collect tariff revenue. “It will be massive amounts of money pouring into our Treasury coming from foreign sources,” he said during his address. The plan has sparked heated debates within Trump’s economic team. Some advisors are pushing for a softer approach, while others argue for aggressive tariffs to send a strong message. The final details are still being ironed out, but one thing is clear: this policy could have far-reaching consequences for trade relations and the U.S. economy. Critics worry that these tariffs could reignite inflation and trigger retaliatory measures from other countries, potentially leading to a full-blown trade war. During Trump’s first term, U.S. exports like soybeans and whiskey faced retaliatory tariffs, hurting American farmers and businesses. As the February 1 deadline approaches, all eyes are on how this policy will unfold—and how it will impact both American consumers and global trade dynamics.