Donald Trump Implements Tariffs on Canada, Mexico, and China, Threatening Global Economic Stability | US News
President Donald Trump has enacted an order that places significant tariffs on imports from Canada, Mexico, and China, potentially sparking a trade war and driving up prices for American consumers.
Mr. Trump has proclaimed an economic emergency to impose duties of 25% on goods from Mexico and Canada, while applying a 10% tax on all imports from China.
However, energy imports from Canada, such as oil, natural gas, and electricity, will be subject to a 10% tax.
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Trump announces new tariffs
The tariffs are set to take effect on Tuesday, featuring a clause that could escalate the rates if the affected countries retaliate, a move they may be contemplating.
Canada and Mexico represent two of America’s largest trading partners, and these tariffs risk disrupting established trade relationships that have lasted for decades.
Mr. Trump asserted on social media that the tariffs – a key promise of his campaign – are essential “to protect Americans”.
The administration further argued that the tariffs aim to hinder the distribution and production of the opioid fentanyl and to pressure neighboring countries to restrict illegal immigration into the U.S.
However, these taxes could throw the global economy into disarray and exacerbate inflation in the United States, where prices for groceries, fuel, housing, vehicles, and various other goods have already risen.
Mexico’s president, Claudia Sheinbaum, commented at an event on Saturday, “I’m calm, I’ve been saying since yesterday, because I know that Mexico’s economy is very powerful, very strong.”
Economic minister Marcelo Ebrard declared, “we will win” when asked about his stance on the U.S. tariffs.
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In related news, Canada’s soon-to-be-former prime minister Justin Trudeau commented on X that while he “did not want this,” Canada is ready to respond. He is scheduled to address the nation in the coming hours and will also have discussions with Ms. Sheinbaum.
A fresh analysis from the Budget Lab at Yale University found that the average American household could face a loss equivalent to $1,170 (£944) in income due to the tariffs. The research also indicated that economic growth might decelerate and inflation could worsen, particularly if Canada, Mexico, and China decide to retaliate.
Read more:
How Trump’s tariffs could impact consumers
Why is Trump imposing the tariffs?
“It doesn’t make much economic sense,” stated William Reinsch, a senior adviser at the Centre for Strategic and International Studies and a former U.S. trade official.
“Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers can remain competitive… Now, what’s he discussing? He’s referring to tariffs on raw materials. I can’t understand the economics behind it.”
Mr. Trump seems to be gearing up for further import taxes.
On Friday, he indicated that imported computer chips, steel, oil, and natural gas, along with copper, pharmaceuticals, and products from the European Union may also face tariffs, potentially putting the U.S. at odds with a significant portion of the global economy.
