President Donald Trump Imposes New Tariffs on Mexico, Canada, and China
President Donald Trump has announced new tariffs on Mexico and Canada, imposing a 25% tariff on Mexico and Canada, and a 10% tariff on China. This was confirmed by the White House on Saturday. However, Trump stated on Friday that the tariff on Canadian oil would be 10%, and it will come into effect on February 18.
This decision to impose tariffs may cause widespread anger in both Canada and Mexico. White House Press Secretary Caroline Levitt said that the tariffs were being imposed because of the "illegal fentanyl" (a type of drug) that is being imported from the two countries into the United States and is widely spreading, causing millions of American deaths. Trump has also repeatedly stated that this move will address illegal immigration flow at the Mexico-U.S. border and resolve the trade deficit.
China is also included under this tariff measure, although Trump had previously threatened a 60% tariff. However, imports from China to the U.S. have remained almost the same since 2018. Earlier this month, China's Vice Premier Ding Xuexiang said that China is seeking a 'win-win' situation to reduce trade tensions and increase imports.
Trump has also mentioned plans to impose tariffs on the European Union, claiming that the European bloc has not treated the United States well.
Both Canada and Mexico have already stated that they will take retaliatory steps against the U.S. tariffs and will address the U.S. concerns regarding border security. Canadian Prime Minister Justin Trudeau said, "If Trump moves forward, we will take action."
These measures may harm the U.S. economy. Imposing tariffs on oil imports from Canada and Mexico could drive up fuel prices, which could disrupt Trump's goal of "lowering the cost of living."
Experts suggest that the imposition of these tariffs could lead to higher inflation in the U.S. and negatively impact U.S. economic growth. Former Canadian and Bank of England Governor Mark Carney has stated that this tariff move could harm the U.S.'s international reputation and have a negative impact on global trade.
