Analysis by Matt Egan, CNN
5 minute read
Updated 9:02 AM EST, Sun February 2, 2025
New York CNN —
President Donald Trump is on the verge of hitting America’s three biggest trading partners with sweeping tariffs, a far more aggressive use of his favorite economic weapon than anything he did during his first term.
The looming import taxes on Mexico, Canada and China will be a major test of Trump’s unorthodox use of tariffs, which he’s described as “the greatest thing ever invented.”
It’s an enormous gamble, arguably a bigger one than any economic policy Trump enacted during his four-plus years in the White House. And this strategy has the potential to upend the thing many voters care about the most: the economy and the cost of living.
But Trump’s tariffs pose a big risk: They could backfire, lifting already-high consumer prices at the grocery store, rocking the shaky stock market or killing jobs in a full-blown trade war.
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