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Donald Trump has long threatened increasing tariffs on goods from Mexico, Canada, and China.

The second-time president argues higher levies will help reduce illegal migration and the smuggling of fentanyl to the US.

On Saturday 1 February the three tariffs came into effect, with Mexican and Canadian goods subject to the full 25% – and Chinese imports to 10%.

Although the Trump administration says the changes will boost domestic production, there will likely be wide-ranging negative consequences for the US consumer.

Economists argue supply chains will be disrupted and businesses will suffer increased costs – leading to an overall rise in prices.

Analysis:
Why has Trump targeted Mexico and Canada?

Both Mexico and Canada rely heavily on their imports and exports, which make up around 70% of their Gross Domestic Products (GDPs), putting them at even greater risk from the new tariffs.

China only relies on trade for 37% of its economy, having made a concerted effort to ramp up domestic production, making it relatively less vulnerable.

Here we look at where US consumers will feel the biggest impact.

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Tariffs to focus on Mexico and Canada

Avocados – and other fruit and veg

The US imports between half and 60% of its fresh produce from Mexico – and 80% of its avocados, according to figures from the US Department of Agriculture.

Canada also supplies a lot of the US’s fruit and vegetables, which are mainly grown in greenhouses on the other side of the US border.

This means that increased tariffs will quickly be passed on to consumers in the form of higher prices.

The US still grows a considerable amount of its own produce, however, so the changes could boost domestic production.

But economists warn that overreliance on domestic goods will see those suppliers increase their prices too.

Petrol and oil prices

Oil and gas prices are likely to be impacted – as Canada provides around 60% of US crude oil imports and Mexico roughly 10%.

According to the US Energy Information Administration, the US received around 4.6 million barrels of oil a day from Canada last year – and 563,000 from Mexico.

Most US oil refineries are designed specifically to process Canadian products, which would make changing supply sources complex and costly.

There has been some speculation that Mr Trump may exempt oil from the new changes – but if he doesn’t, the US could see an increase in fuel prices of up to 50 cents (40p) a gallon, economists have predicted.

Cars and vehicle parts

The US car industry is a delicate mix of foreign and domestic manufacturers.

The supply chain is so complex, car parts and half-finished vehicles can sometimes cross the US-Mexico border several times before they are ready for the showroom.

If this continues, the parts would be taxed every time they move countries, which would lead to an even bigger increase in prices.

To mitigate this, General Motors has said it will try to rush through Mexican and Canadian exports – while brainstorming on how to relocate manufacturing to the US.

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Electronic goods

When Donald Trump imposed a 50% tariff on imported washing machines during his first term in 2018, prices suffered for years afterwards.

China produces a lot of the world’s consumer electronics – and smartphones and computers specifically – so the 10% tariff could have a similar effect on those devices.

The Biden administration tried to legislate to promote domestic production of semiconductors (microchips needed for all smart devices) – but for now, the US is still heavily reliant on China for its personal electronics.

This will mean an increase in prices for consumers unless tech companies can relocate their operations away from Beijing.

Boost for the steel industry

The sector that could feel the most benefit from the Trump tariffs is the steel and aluminium industry.

It has long been lobbying the government to put tariffs on foreign suppliers – claiming they are dominating the market and leaving US factories without enough business and at risk of closure.

Steel imports increasing in price would promote domestic production – and possibly save some of the plants.

But when Mr Trump increased steel tariffs during his first term, prices also increased – which business leaders said forced them to pass on costs and left them struggling to complete construction projects on budget.

Overall inflation

An increase in the prices of all these goods would inevitably lead to widespread overall inflation.

According to analysis by Capital Economics, the Canadian and Mexican tariffs would put inflation above 3% – which is much higher than the Federal Reserve’s target of 2% – and the Chinese levies would see it rise even further.

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Vladimir Putin tells Donald Trump he will not back down from goals in Ukraine, Kremlin says

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Vladimir Putin tells Donald Trump he will not back down from goals in Ukraine, Kremlin says

Vladimir Putin told Donald Trump he “will not back down” from Russia’s goals in Ukraine during a phone call today, the Kremlin has said.

The Russian president spoke to his US counterpart for almost an hour, and Mr Trump “again raised the issue of an early end to military action” in Ukraine, Kremlin aide Yuri Ushakov told reporters.

In response, Mr Putin said “Russia will not back down” from its aims there, which include “the elimination of the well-known root causes that led to the current state of affairs,” Mr Ushakov said.

The phrase “root causes” is shorthand for Moscow’s argument that it was compelled to invade Ukraine in order to prevent the country from joining NATO.

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Trump and Putin’s latest call on Ukraine

Ukraine and its European allies say this is a pretext to justify what they call an imperial-style war, but Mr Trump has previously shown sympathy with Russia.

At the same time, Mr Putin told the US president that Russia is ready to continue negotiating, the aide said.

The Russian president said any prospective peace deal must see Ukraine give up its NATO bid and recognise his country’s territorial gains.

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Donald Trump and Volodymyr Zelenskyy NATO summit in The Hague, Netherlands June 25, 2025. Pic: Reuters
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Volodymyr Zelenskyy, seen with Mr Trump in June, is pushing for Ukraine to join NATO. Pic: Reuters

He also briefed Mr Trump on agreements made last month, which saw Russia and Ukraine exchange prisoners of war and dead soldiers.

Specific dates for the third round of peace talks in Istanbul were not discussed – nor was the US decision to halt some shipments of critical weapons to Ukraine.

Mr Putin and Mr Trump’s call came after the Pentagon confirmed some weapons due to be sent to Ukraine have been held as it reviews military stockpiles.

The paused shipments include air defence missiles and precision-guided artillery, two people familiar with the situation have said.

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The decision led to Ukraine calling in the acting US envoy to Kyiv on Wednesday to underline the importance of military aid from Washington.

Kyiv also cautioned that the move would weaken Ukraine’s ability to defend itself against intensifying Russian airstrikes and battlefield advances.

Mr Putin and Mr Trump’s phone call was the sixth they have publicly disclosed since the US president returned to the White House in January.

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Donald Trump’s ‘big beautiful’ tax cuts bill passes final hurdle in US Congress

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Donald Trump's 'big beautiful' tax cuts bill passes final hurdle in US Congress

Donald Trump’s ‘big beautiful bill’ has been passed by the US congress, sending it to the president to sign into law.

The controversial tax breaks and spending cuts package cleared its final hurdle as the Republican-controlled House of Representatives narrowly approved the bill with a 218-214 vote.

The bill delivers tax breaks Mr Trump promised in his 2024 election campaign, cuts health and food safety programmes, and zeroes out dozens of green energy incentives.

According to the nonpartisan Congressional Budget Office (CBO), it will lower tax revenues by $4.5trn over 10 years and add $3.4trn to the US’s $36.2trn debt.

But despite concerns over the 869-page bill’s price tag – and its hit to healthcare programmes – Republicans largely lined up in support, with just two rebelling on the vote.

Speaker Mike Johnson congratulated following the signing of Trump's bill. Pic: Reuters
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House Speaker Mike Johnson is congratulated following the vote. Pic: Reuters

Every Democrat in Congress voted against the bill, blasting it as a giveaway to the wealthy that will leave millions of Americans uninsured.

House Speaker Mike Johnson made the Republicans’ closing argument for the bill, telling Congress: “For everyday Americans, this means real, positive change that they can feel.”

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Earlier, the House’s Democratic leader Hakeem Jeffries gave a record-breaking eight-hour and 44-minute speech against it.

“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,” he said.

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The bill’s spending cuts largely target Medicaid, the health programme that covers 71 million Americans on low incomes.

It will tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments.

The changes could leave nearly 12 million people without health insurance, according to the CBO.

On the other side of the ledger, it will stave off tax increases that were due to hit most Americans at the end of the year, when tax cuts from President Trump’s first term were due to expire.

It also sets up new tax breaks for overtime pay, seniors and tipped income.

Read more:
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Kremlin shares details of Putin-Trump call

The bill narrowly passed the US Senate on Tuesday after vice president JD Vance cast the deciding vote to break a 50-50 tie.

Mr Trump will sign it into law on Friday at 5pm local time (10pm in the UK), the White House said.

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Sean ‘Diddy’ Combs denied bail after being convicted over prostitution-related offences

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Sean 'Diddy' Combs denied bail after being convicted over prostitution-related offences

Sean “Diddy” Combs has been found guilty of transportation for prostitution following a landmark trial in New York – but cleared of more serious charges of sex trafficking and racketeering conspiracy.

The hip-hop mogul was accused by prosecutors of abusing and coercing three alleged victims, including his former long-term partner, singer and model Cassie Ventura, and other crimes including kidnapping, arson and blackmail.

Jurors decided not all the allegations were proven – but Combs still faces several years in prison after being convicted of transporting people across the US, including Cassie and another former girlfriend “Jane”, and paying male escorts to engage in sexual encounters.

However, with the not guilty verdict on three other more serious charges – racketeering conspiracy and two of sex trafficking – the 55-year-old has avoided a maximum possible sentence of life behind bars.

Despite a request by his defence team, he was denied bail ahead of sentencing – which has been scheduled for Friday 3 October.

Sean "Diddy" Combs reacts after verdicts are read of the five counts against him, during Combs' sex trafficking trial in New York City, New
Image:
Combs appeared upbeat in court as the verdict was announced. Pic: Jane Rosenberg/ Reuters

Marc Agnifilo, part of Diddy’s defence team, described the ruling as “a victory of all victories”.

Outside the courthouse, he said the jury “got the situation right, or certainly right enough”.

Another of his lawyers, Nicole Westmoreland, said: “He actually battled for his freedom, for his innocence, and he did it.

“And, you know, a lot of times, people are too afraid to do it. Today is a major win to show what the system can do.”

The mixed result from the jury came not long into their third day of deliberations. In the courtroom in Manhattan, there were cheers from Combs’s family – and the rapper himself held his hands up in a prayer motion, looking at the jury, and hugged his defence lawyer Teny Geragos.

His mood seemed very different to just a day earlier – when he learned the jury had reached a verdict on four of the five charges, but were split on the racketeering charge.

After deliberating for longer on Wednesday, they came to a unanimous decision.

As the verdict sunk in, Combs appeared overwhelmed, kneeling at his chair and bowing his head in prayer once again.

“I’ll be home soon,” he said as he faced his family members. “I love you, Mum.”

Sean "Diddy" Combs reacts after verdicts are read of the five counts against him, during Combs' sex trafficking trial in New York City, New
Image:
Combs later seemed to become overwhelmed with relief. Pic: Jane Rosenberg/ Reuters

The application for bail

Combs’s defence team argued that as he had been cleared of the most serious charges, he should be bailed ahead of sentencing.

His lawyer Marc Agnifilo said he had been a model prisoner and added: “He’s not going to flee. He’s been given his life back.”

But prosecutor Maurene Comey argued Combs had a history of violence, which Judge Arub Subramanian agreed with. “At trial, the defence conceded the defendant’s violence in his personal relationships,” he said.

After being denied bail, Combs attempted get the judge’s attention – but after consulting with Mr Agnifilo, he did not speak.

Sean "Diddy" Combs watches as his former girlfriend Casandra "Cassie" Ventura is sworn in as a prosecution witness before U.S. District Judge Arun Subramanian at Combs' sex trafficking trial in New York City, New York, U.S., May 13, 2025 in this courtroom sketch. REUTERS/Jane
Image:
Casandra ‘Cassie’ was heavily pregnant when she gave evidence at the start of the trial. Pic: Jane Rosenberg/ Reuters

Cassie ‘paved the way’

Reacting to the verdict, Cassie’s lawyer Douglas H Wigdor said that although jurors did not find Combs guilty of sex-trafficking Cassie, she had “paved the way” for the other guilty verdicts.

“By coming forward with her experience, Cassie has left an indelible mark on both the entertainment industry and the fight for justice,” he said.

“We must repeat – with no reservation – that we believe and support our client, who showed exemplary courage throughout this trial.”

Cassie, who testified heavily pregnant just three weeks before giving birth, displayed “unquestionable strength”, he added, and “brought attention to the realities of powerful men in our orbit”.

Videos of “freak off” sex sessions with male escorts were shown to jurors only during the seven-week trial, with the footage kept private from members of the public and media in court.

Read more:
How the trial unfolded
The rise and fall of Sean ‘Diddy’ Combs

Sean "Diddy" Combs listens as Assistant U.S. Attorney Meredith Foster questions Ananya Sankar during his sex trafficking trial
Image:
Pic: Reuters/ Jane Rosenberg

Former employees, along with escorts, hotel staff and police officers were among those to give evidence.

Cassie and Jane, who used a pseudonym, also testified. They told the court they were coerced into drug-fuelled “freak offs” – which were also referred to as “hotel nights” or “wild king nights” – with male escorts, and abused throughout their relationships.

Combs’s defence team presented a very different picture to show that sexual acts, including freak offs, were consensual.

They conceded the music star could be violent, had a bad temper and used drugs. He also had multiple relationships at the same time. But crucially, they said, while he was “not proud” of some of his behaviour, none of it made him guilty of the charges against him.

After hearing evidence of flights and travel for escorts and Cassie and Jane, paid for by Combs, as well as hotel bookings across the US and the Caribbean, jurors found him guilty of the transportation to engage in prostitution charges. However, they did not find that the allegations against the rapper amounted to sex trafficking or racketeering.

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CCTV footage shows Diddy ‘attacking’ Cassie in hotel

The Cassie hotel tape

Combs, known variously as Puff Daddy, P Diddy, and Diddy over the years, was once one of the most influential figures in hip-hop – famous as a producer, founder of Bad Boy Records and manager of the late Notorious BIG in the 1990s, as well as a rapper in his own right.

As an artist, he won three Grammys during his career, and had hits including I’ll Be Missing You, Come With Me, and Bad Boy For Life.

In September 2023, he received the “global icon” award from MTV and was given the key to New York City at a ceremony in Times Square, just a few miles away from the streets in Harlem where he spent his first years.

Allegations first came to prominence in November 2023, when Cassie filed a bombshell lawsuit accusing him of coercing her into unwanted sex sessions, as well as blackmail and several incidences of violence.

The suit was settled in 24 hours – for $20m, it emerged during the trial – but months later CNN aired hotel security footage showing Combs punching and kicking Cassie and throwing her to the floor in 2016.

He apologised after the video aired, saying: “I was disgusted when I did it.”

Footage from the hotel incident was shown during the trial.

Following the verdict, the rapper now awaits sentencing. He also still faces several civil lawsuits, most of which were filed in the wake of his arrest in September 2024.

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