Key Takeaways The fallout from President Donald Trump's trade war against America's largest trading partners is just beginning.Tariffs could cause rising prices, higher unemployment, and a general economic slowdown,

Amid warnings of price increases, Canada moved quickly to retaliate, China said it had planned countermeasures and Mexico said it would soon unveil its response.

Trump knows the United States has more leverage over its neighbors than they do over his country. But exploiting that position of strength could cause a historic rupture.