The Trump administration reignited trade tensions in 2025 by imposing sweeping tariffs on Canada and Mexico, leading to immediate retaliatory measures. This marked the beginning of a broader trade conflict, with tariffs expanding to over 60 countries, including the European Union and China. The introduction of the 'Liberation Day' tariffs further escalated tensions, causing significant market disruptions. A temporary agreement with China in May 2025 offered a brief respite, but additional tariffs on Chinese goods soon followed. Legal challenges culminated in a Supreme Court ruling against key tariff measures in February 2026, prompting President Trump to announce a new global 10% tariff. The ongoing trade war significantly impacted global markets and domestic economies, as highlighted by a major ad campaign focusing on its effects on small businesses.
