US President Donald Trump signed orders imposing tariffs on goods from Canada, Mexico, and China, escalating trade tensions and raising concerns about a global economic slowdown. The move comes after Trump accused the countries of failing to address US concerns over illegal immigration and drug trafficking.
US President Donald Trump dashed hopes on Monday of a last-minute deal with Canada and Mexico to avert sweeping tariffs, while simultaneously signing an order to increase duties on China . Trump had previously unveiled and then paused blanket tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to curb illegal immigration and drug trafficking.
After telling reporters Monday that there was 'no room left' for both countries to avoid fresh levies, the White House confirmed that Trump had also signed an order to increase a previously imposed 10 percent tariff on China to 20 percent.However, these widespread tariffs, particularly on Canada and Mexico, are poised to disrupt supply chains for key sectors such as automobiles and construction materials, potentially leading to a surge in consumer prices. This development could complicate Trump's efforts to fulfill his campaign promises of lowering costs for households. On Monday, Trump stated to reporters that tariffs of up to 25 percent on Canada and Mexico were 'all set'. He added, 'What they'll have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.'Canada responded by announcing it would impose 25 percent tariffs on C$155 billion (US$107 billion) worth of US goods beginning Tuesday if the Trump administration follows through with its proposed tariffs on Canadian goods, Prime Minister Justin Trudeau stated on Monday. Canada will levy 25 percent tariffs on C$30 billion worth of US goods immediately, while tariffs on the remaining C$125 billion of products will take effect in 21 days, Trudeau said in a statement. 'Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,' Trudeau added. Beyond this week's looming deadline, Trump announced on social media Monday that tariffs on agricultural imports would come into effect on April 2nd. A White House official informed AFP that this falls under Trump's existing plans for reciprocal tariffs tailored to each trading partner.Ryan Majerus, a former US trade official, stated, 'There's no doubt that the administration is trying to solve the long-standing fentanyl and immigration challenges, and these tariffs have given the administration leverage.' However, he cautioned, 'It remains to be seen how this will all play out in potential lawsuits.' Robert Dietz, chief economist at the National Association of Home Builders, told AFP that the group expects 'we could see a combined duty tariff rate of above 50 percent on Canadian lumber.' He added, 'Softwood lumber futures prices have gone up 8 percent in the last few weeks.' While the United States also plans to expand forestry, Dietz said, prices will likely rise in the short run. Anecdotally, some builders expect they could face higher costs of US$7,500 to US$10,000 per newly built single-family home, he said. JPMorgan analysts warned Friday that Tuesday's tariffs would 'create a significant new headwind to economic activity' and boost consumer costs. Mexico's President Claudia Sheinbaum stated Monday that her country has contingency plans, regardless of the decision Trump makes. While Washington has targeted China over chemicals for the fentanyl drug, many of these components have legitimate medical uses as well, making prosecution complex. Canadian Prime Minister Justin Trudeau has said that less than 1 percent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border. However, he added Sunday that Canada would 'have a strong, unequivocal and proportional response' if levies took effect. Trudeau's government has taken a series of steps to address Trump's concerns, including a C$1.3 billion (US$901 million) plan to enhance border security. Meanwhile, Mexico last week extradited some of its most notorious imprisoned drug lords to the United States in an attempt to avert the sweeping duties
Politics Tariffs Trade War Canada Mexico China Donald Trump Economy Immigration Fentanyl
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