President Trump today officially implemented extensive tariffs on imports from Canada, Mexico, and China, fulfilling a promise he made to demand more from America’s key trade partners.
Canada and Mexico will face a 25% tariff on all goods brought into the US, while Chinese imports will be subjected to a slightly lower tariff of 10%.
The United States will also impose a 10% tariff on energy-related products from Canada, including natural gas, oil, and electricity.
These tariffs are outlined in three Executive Orders, which include provisions to increase the tariffs if any of the three countries retaliate.
The move comes as a response to the three nations’ alleged leniency towards illegal immigration and fentanyl, the latter of which has flooded the US in recent years, causing the deaths of “tens of millions” of Americans, according to White House spokesperson Karoline Leavitt on Friday.
“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 favor of it,” Trump posted on Truth Social.
The tariffs are being implemented under the International Emergency Economic Powers Act (IEEA), which gives the President authority to regulate imports during a national emergency as declared under the National Emergencies Act.
Trump invoked the National Emergencies Act last month, citing a crisis at the southern US border.
Senate Minority Leader Chuck Schumer (D-New York) criticized the tariffs, claiming they would only make life more difficult for ordinary Americans.
“It would be nice if Donald Trump could start focusing on getting the prices down instead of making them go up,” he told CNN, adding that the tariffs “will likely hit Americans in their wallets” and that lawmakers should focus on confronting competitors who manipulate the system, like China, rather than targeting allies.
Schumer then went on a series of posts on X, warning that the new tariffs would drive up prices on everything from gas to pizza: “Wait till Trump’s tariffs raise your pizza prices.”
The tariffs on Canada are expected to go into effect on Tuesday, imposing the 25% tariff on almost all goods imported from the northern neighbor.
However, Canada is likely to respond by imposing its own retaliatory tariffs, with Prime Minister Justin Trudeau planning an announcement later Saturday, according to reports.
It is still unclear when the tariffs will be applied to Mexico and China.
Trump has long advocated for imposing tariffs on foreign imports as a means of addressing trade imbalances, generating revenue, and using the tactic as leverage in unrelated policy disputes.
Earlier this month, when Colombia initially refused to take back a plane load of its citizens living illegally in the US, Trump threatened tariffs as high as 50%—a move that could have driven the small nation into a severe economic downturn.
In response, Colombia’s President Gustavo Petro quickly caved and even offered his presidential plane to assist with deportations.
The tariffs are expected to lead to notable price hikes for American consumers on many everyday goods.
In 2024, the US imported over $100 billion worth of cars and vehicle parts from Mexico, with an additional $34 billion coming from Canada.
As a result, the tariffs will likely cause a short-term rise in car prices, at least until US suppliers are able to meet the increased demand.
Popular products like margaritas and tequilas may also see price hikes.
In 2024, the US imported $46 billion in agricultural goods from Mexico, including $9 billion worth of fresh fruits. When the tariffs take effect, fruit prices at grocery stores are expected to rise across the country.
Additionally, the tariffs could reduce the consumer purchasing power for electronics by $90 billion, impacting smartphones, TVs, laptops, tablets, video game consoles, headphones, and other popular tech items, according to the Consumer Technology Association.
Laptops and tablets could experience price increases of up to 45%, while smartphones and video games could see double-digit hikes as well.
“The likelihood of retailers or any importer absorbing the tariff cost is very low, so the pass through to consumers will be quick,” Ed Brzytwa, vice president of international trade at CTA, told CBS News. “On all the products we looked at, there are going to be price increases.”
The Peterson Institute has estimated that these tariffs would cost the average US household more than $2,600 annually.
{Matzav.com}
Why is trump doing it?