Trump’s “America First” foreign policy, characterized by an aggressive trade strategy and the liberal use of tariffs, is likely to significantly reshape global and regional dynamics by prioritizing U.S. economic and political interests over multilateral collaboration. For neighbouring countries like Canada and Mexico, the economic fallout could be severe, as both are heavily reliant on trade with the U.S. The proposed 25% tariff threatens key industries, from automotive manufacturing in Mexico to agriculture and energy exports in Canada, disrupting cross-border supply chains that have developed over decades.

Globally, the proposal of this tariff policy increases trade tensions, particularly with China. The targeted tariffs on Chinese imports not only strain bilateral relations but also create ripple effects in the global economy, potentially driving inflation and supply chain instability. Countries that rely on China as a trading partner may be forced to recalibrate their economic policies in response to U.S. measures.  Trump’s "America First" rhetoric may also damage diplomatic relations, as seen in Trump’s provocative (and presumably facetious) suggestion that Canada should consider becoming the “51st state”. Such remarks are likely to diminish trust and mutual respect between the United States and its allies. Neighbouring countries and trading partners may retaliate with their own protectionist measures, further fragmenting global trade.