Trump's Tariffs On Canada, Mexico And China Could Mean Higher Inflation And Economic Disruption

New trade penalties against Canada, Mexico and China that President Donald Trump plans to impose Saturday represent an aggressive early move against America's three largest trading partners , but at the risk of higher inflation and possible disruptions to the global economy.

In Trump's view, the 25 tariffs against the two North American allies and a 10 tax on imports from Washington's chief economic rival are a way for the United States to throw around its financial heft to reshape the world.

"You see the power of the tariff," Trump told reporters Friday. "Nobody can compete with us because we have by far the biggest piggy bank."

The Republican president is making a major political bet that his actions will not worsen inflation, cause financial aftershocks that could destabilize the worldwide economy or provoke a voter backlash. AP VoteCast, an extensive survey of the electorate in last year's election, found that the U.S. was split on support for tariffs.

It is possible that the tariffs could be short-lived if Canada and Mexico can reach a deal with Trump to more aggressively address illegal immigration and fentanyl smuggling. Trump's move against China is also tied to fentanyl and comes on top of existing import taxes.