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Donald Trump was sworn in as the 47th president of the United States a little over a month ago (20 January), and he's since made some pretty strong changes - some of the most controversial being the implementation of hefty tariffs on the likes of China, Canada and Mexico.
The move has been accused by some of triggering a global trade war as several countries - including China and Canada - have fired back with their own tariffs.
And this week, Canada's new prime minister Mark Carney spoke about the tariffs in his first speech since being elected, as he said he can 'no longer trust' America as he addressed escalating tensions.
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But what exactly does all this mean? Let's break it down.
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What are tariffs?
Tariffs are taxes charged on goods imported from other countries. So, for example, imposing a 20 percent tariff on goods means that a product worth $10 would have an additional $2 charge applied to it.
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Tariffs of 25 percent have now come into force against goods hailing from Canada, which is one of the States' biggest trading partners.
Meanwhile, Mexico has also also been hit with a 25 percent tariff and China a 20 percent tariff.
The issue is that the likes of Canada and China have now retaliated with their own tariffs on US goods, signalling rumblings of a global trade war.
According to the Peterson Institute for International Economics, a thinktank estimated Trump's move would cost the typical US household upwards of $1,200 each year and claimed the tariffs amount to 'the largest tax increase in at least a generation'.
So, why is Trump bringing tariffs in?
Trump and his allies have stated that higher tariffs on US imports from across the globe will help 'make America great again' by enabling the country to gain political and economic concessions from allies and rivals on the world stage.
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When he first announced plans for new tariffs, the White House said Trump was 'taking bold action to hold [the three countries] accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country'.
Justin Trudeau brands Trump's tariffs an 'economic crisis'
Former Canadian Prime Minister Justin Trudeau spoke out on the US' trade stance in his final speech as he stepped down from his role.
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Speaking at the Liberal Party conference, he said: "Now as Canadians face from our neighbour an existential challenge and economic crisis, Canadians are showing what we are made off.
"Standing up for everyone’s fundamental rights is the only way to protect our freedom."
This isn't the first time Trudeau has had something to say about this, as he previously told press in a televised address: "It’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you are a very smart guy, this a very dumb thing to do."
A month earlier, Trudeau also clapped back at a series of comments Trump allegedly made about turning Canada into America's '51st state'.
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On 20 February, he tweeted: "You can’t take our country, and you can’t take our game," in response to his country's victory over the US during a 4 Nations Face-Off Championship Hockey Game.
Trudeau's statement was subsequently interpreted as a damning political statement.
Canadian PM Mark Carney hits out at Trump
New Canadian PM Mark Carney has also hit out at the US, having described America as a country that he 'could no longer trust', as per the BBC.
The ex Bank Of England boss addressed escalating tariff-related tensions during a bold speech, in which he accused the 78-year-old Republican of 'attacking Canadian families'.
Carney also accused Trump of planning to 'destroy the Canadian way of life', while describing his trade plans as one of the 'greatest crises of our lifetime'.
"There is someone who is trying to weaken our economy: Donald Trump," Carney began. "Donald Trump has put unjustified tariffs on what we build, sell and how we make a living."
He also hit out at the US over the potential future tariffs the country might hit Canada with, as he added: "The Canadian government has rightly retaliated with tariffs. We will keep our tariffs on until the Americans show us respect. We did not ask for this fight. But Canadians are always ready when someone else drops the gloves."
He continued: "Make no mistake, Canada will win. We have made this the greatest country in the world and now our neighbours want to take us. No way. We can’t change Donald Trump … [but] because we’re masters in our own home, we can control our economic destiny."
How had Donald Trump responded to the backlash?
As expected, President Trump hasn't let comments from both Trudeau and Carney slip by.
The American leader told press he'll be increasing tariffs on goods from Canada from 25 to 30 percent following Canada's retaliation.
According to PA, Trump confessed that the reasoning for the decision came from the rise in prices that the government of Ontario placed on electricity sold to the US in retaliation to Trump's first move.
Posting on his own social media channel today (11 March), Trump penned: "I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD."
The post has triggered the US stock market to promptly fall.
Topics: US News, Politics, Donald Trump
Niamh Spence