Trump Announces New Tariffs On Mexico, Canada And China.
US President Donald Trump has announced new tariffs on imports from Mexico, Canada, and China, with duties set to take effect on Saturday. According to the White House, tariffs of 25% will be imposed on Mexico and Canada, while Chinese goods will face a 10% duty.
However, Trump revealed on Friday that Canadian oil would be subject to a lower 10% tariff, which is expected to come into force later, on 18 February. He also signalled plans to impose tariffs on the European Union in the future, citing unfair treatment of the US by the bloc.
White House press secretary Karoline Leavitt stated that the tariffs on Canada and Mexico were a response to the “illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans.” Trump has also justified the move as a measure to curb undocumented migration and address trade imbalances with neighbouring countries.
“These are promises made and promises kept by the President,” Ms Leavitt said during a White House briefing on Friday.
During his election campaign, Trump had threatened to impose tariffs of up to 60% on Chinese products. However, instead of taking immediate action upon his return to the White House, he directed his administration to review the issue further.
The imposition of tariffs on China raises concerns about a renewed trade war between the world’s two largest economies. At the World Economic Forum in Davos earlier this month, Chinese Vice Premier Ding Xuexiang warned against protectionism and called for a “win-win” approach to resolving trade disputes.
Canada and Mexico Vow to Retaliate
Canadian Prime Minister Justin Trudeau responded to Trump’s announcement, stating, “It’s not what we want, but if he moves forward, we will also act.” Both Canada and Mexico have indicated they will introduce countermeasures while also seeking to reassure Washington of their efforts to address border concerns.
Potential Economic Impact
China, Canada, and Mexico account for 40% of goods imported into the US, raising fears that these new tariffs could spark a major trade conflict and lead to rising prices for American consumers.
Tariffs, which act as a tax on imported goods, are typically intended to encourage domestic purchases by making foreign products more expensive. However, the cost of these levies can often be passed on to consumers, potentially driving up prices for essential goods such as petrol and groceries.
Trump acknowledged on Friday that tariff costs are sometimes borne by consumers, admitting that his trade policies could cause short-term disruption. Given that around 40% of the crude oil used by US refineries is imported—mostly from Canada—tariffs on energy imports could risk undermining his pledge to lower the cost of living.
