Trade War Escalation: US, China, Canada, and Mexico in a High-Stakes Tussle

The ongoing trade war between the US and its major trading partners has taken a dramatic turn, with the US imposing tariffs on Canada and Mexico, and China responding with a mix of defiance and caution. The US tariffs on Canada and Mexico stand at 25%, while those on China are capped at 10%. China has announced plans to challenge the US tariffs at the World Trade Organization (WTO), a move that could potentially escalate the trade tensions further. In response to the US tariffs, Canada and Mexico have announced retaliatory measures, with Canada targeting $155 billion worth of US goods. The economic repercussions of this trade war are already being felt, with potential recession looming large over Canada and Mexico, and a shallow downturn predicted for the US. As the situation continues to unfold, it remains to be seen how the various parties will navigate this complex and high-stakes trade tussle.