The trade war between the U.S., Canada, and Mexico kicked off in 2018 when President Trump slapped tariffs on steel and aluminum imports. In response, Canada and Mexico fought back with their own tariffs, leading to a standoff that dragged on for over a year. Now, with the trade war on hold, leaders from all three countries are breathing a sigh of relief. But when you take a closer look—who really came out on top?
The Winners
Canada and Mexico – These countries took a big hit from U.S. tariffs, especially in their steel and aluminum industries. With the trade war now paused, businesses in these sectors have a chance to bounce back.
U.S. Farmers – Many American farmers were caught in the crossfire, as Canada and Mexico’s retaliatory tariffs hurt exports of crops like soybeans and corn. With the delay, farmers can start rebuilding their markets and recovering lost income.
U.S. Consumers – Without new tariffs, prices on products from Canada and Mexico won’t spike. That means everyday people in the U.S. won’t have to pay more for certain goods.
The Losers
U.S. Steel and Aluminum Industries – These industries actually benefited from Trump’s tariffs because they reduced competition from imports. But now that the trade war is on hold, cheaper steel and aluminum from Canada and Mexico will be back in the game, making it tougher for U.S. companies to compete.
The Bottom Line
While politicians may be celebrating, the real winners here are Canada, Mexico, U.S. farmers, and American consumers. The downside? U.S. steel and aluminum companies now have a tougher road ahead. As this situation unfolds, it’s worth keeping an eye on how businesses and workers in all three countries adjust to the new reality.
Author: Hassan Ahmad
