Trump to Impose Trade Tariffs on Canada and Mexico This WeekendBut Who Pays? [Video]

President Donald Trump is set to impose 25 percent tariffs on Canadian and Mexican imports, potentially disrupting nearly $1.6 trillion in annual trade. The tariffs, scheduled to take effect on Saturday, are being introduced as part of Trump’s strategy to pressure Canada and Mexico to address illegal immigration and drug trafficking into the United States.

Questions remain about how these tariffs will impact businesses, consumers and the broader economy. A key issue in the debate is understanding who ultimately bears the cost of tariffs and how they function in global trade.

Why It Matters

Tariffs are taxes on imported goods, typically paid by the importing businesses, which can then pass costs onto consumers through higher prices. In this case, the importing business would be any American company that purchases goods from foreign suppliers and brings them into the country for resale, manufacturing, or distribution. Trump’s new tariffs could significantly raise costs for products ranging from automobiles to …