Synopsis
Starting today, President Donald Trump’s initial tariff increases will target imports from Canada and Mexico with a 25% tax and from China with a 10% levy. Subsequent hikes on various sectors are expected to follow.Key Takeaways
- Trump’s tariffs on Canada and Mexico are 25%.
- China faces a 10% tariff.
- Potential exceptions for crude oil and autos.
- Canada and Mexico may retaliate.
- The automotive industry faces significant costs.
Washington, Feb 1 (NationPress) US President Donald Trump’s initial tariff increases are scheduled to commence on Saturday, imposing a 25% tax on imports from neighboring countries Canada and Mexico, along with a 10% levy on goods from China.
Subsequent hikes targeting sectors like computer chips, pharmaceuticals, steel, aluminium, copper, oil, and gas imports are expected to be announced later this month.
Trump's administration has singled out Canada and Mexico for not adequately preventing undocumented migrants from crossing the US borders, while China has been criticized for not halting the export of fentanyl.
During a press briefing in the Oval Office on Friday, Trump stated that there was nothing Canada's, Mexico's, or China's governments could do to avert the tariffs before their implementation on Saturday. Nevertheless, he mentioned that there might be exceptions, particularly for crude oil and automobiles, if they align with the terms of the US-Canada-Mexico Agreement.
“This will generate a substantial revenue for our nation, a substantial revenue, these figures are significant,” Trump remarked to reporters.
“Moreover, you can see the strength of the tariff; I mean, the tariff is beneficial, and no one can compete with us because we possess the largest financial resources.”
In response, Canada and Mexico have warned of reciprocal tariff hikes on American goods, which could adversely affect US businesses, given that Mexico and Canada are the United States' top trading partners.
“If the President proceeds with any tariffs against Canada, we are prepared with a response. A deliberate, strong, yet reasonable immediate reply,” stated Canada’s outgoing Prime Minister Justin Trudeau on Friday. “We will not back down until the tariffs are lifted, and naturally, everything is under consideration.”
The US automotive sector is likely to face the most significant impact from the tariff increases, as numerous components and parts are produced in facilities located in Canada and Mexico, necessitating multiple border crossings, which would elevate costs.
The US also relies heavily on agricultural imports from Mexico, such as tomatoes, avocados, and berries. The tariff hikes could lead to increased prices for these goods. Additionally, rising costs for imports of oil and lumber from Canada may drive up prices at gas stations and for construction materials.
