US imposes tariffs: US President Donald Trump on Saturday imposed 25 per cent tariffs on imports from Canada and Mexico, and ordered a 10 per cent tariff on goods from China, citing a ‘major threat’ from ‘illegal aliens’ and drug trafficking. However, energy imports from Canada, including oil, natural gas, and electricity, will be taxed at a reduced rate of 10 per cent.
The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially sabotage economic growth.
‘We need to protect Americans’
Trump said that the tariffs have been implemented to protect US citizens from the threats posed by illegal immigration and drug trafficking.
After signing an order to impose stiff tariffs on imports from Mexico, Canada and China, Trump in a post on Truth Social said “Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl. We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favour of it.”
The order signed by Trump included no provisions for granting exceptions, according to an official, potentially impacting homebuilders reliant on Canadian lumber, as well as farmers, automakers, and other industries.
Tariff necessary to hold them accountable
The White House stated that these tariffs aim to hold all three nations “accountable” for preventing illegal migration and curbing the flow of deadly drugs like fentanyl.
Notably, the tariffs risk an economic standoff with America’s two largest trading partners in Mexico and Canada, upending a decades-old trade relationship with the possibility of harsh reprisals by those two nations. The tariffs also if sustained could cause inflation to significantly worsen, possibly eroding voters’ trust that Trump could as promised lower the prices of groceries, gasoline, housing, autos and other goods.
Trump has repeatedly said he will follow through with his threat to hit imports from Canada and Mexico on 1 February.
During the election campaign, Trump threatened to hit Chinese-made products with tariffs of up to 60 per cent, but held off on any immediate action on his first day back in the White House, instead ordering his administration to study the issue.
Earlier, Canadian Prime Minister Justin Trudeau said that their response to US tariffs would be “forceful but reasonable”. “If the president does choose to implement any tariffs against Canada, we’re ready with a response — a purposeful, forceful but reasonable, immediate response,” Trudeau told reporters before a meeting with his advisory council on Canada-US relations on Friday, The Globe and Mail reported.
(With agencies input)
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