The threat of U.S. tariffs on its three biggest trading partners could spark a global trade war, stoke inflation at home and appears to violate the terms of the U.S. Canada Mexico Agreement free trade deal signed into law by Trump in his first term.
The USCMA is up for renegotiation in 2026, when a "sunset" provision will allow withdrawal from the pact, and the threat of tariffs is likely a bid to prompt early negotiation and better terms for the U.S.