25% tariffs on goods coming in from Mexico and Canada are not a disaster for Canada or Mexico. There will be declines in U.S. sales, but those countries can still consume those goods domestically or export to other nations. So companies making those goods will see profits fall for the portion of their sales that go to the next highest bidders. But Americans will be paying higher prices on all Canadian and Mexican imports they buy, or for higher-priced domestic substitutes where available. But many lower-income Americans will be priced out of the market for those goods entirely. So the tariffs portend more negative consequences for Americans than they do for Canadians or Mexicans. If either Mexico or Canada retaliates with tariffs of their own, the effect will be the same. Their own citizens will suffer more than Americans. That is the unique nature of a trade war. Each side suffers most from its own offensive. The best way for Mexico and Canada to win is not to retaliate. That would include not providing any subsidies to exporters or any attempt to weaken their currencies. That would only reduce the sting tariffs have on Americans, shift the burden to their own people, and prolong the trade war.