President Donald Trump has signed an order imposing stiff tariffs on imports from Canada, Mexico, and China, drawing swift retaliation and escalating a trade war among longtime allies.
The tariffs, set to take effect on Tuesday, will include 10% duties on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas, and electricity, will be taxed at a 10% rate.
Canada’s Prime Minister Justin Trudeau announced that his country will match the US tariffs with its own retaliatory measures, impacting up to $155 billion in US imports, including alcohol and fruit. Mexico’s president has also ordered retaliatory tariffs, calling the US claims of alliance with criminal organizations “slander.”
China’s Ministry of Foreign Affairs denounced the move as a “wrongful practice” and vowed to take necessary countermeasures to defend its rights and interests. The country is set to file a lawsuit with the World Trade Organization.
The tariffs are likely to cause inflation, potentially harming American consumers who rely on affordable goods from Canada and Mexico. Democrats have warned that Trump’s actions will lead to increased prices for groceries, cars, and other essentials.
White House officials acknowledged the potential economic risks but aimed to minimize disruptions by keeping energy imports at a lower rate of 10%. However, critics argue that this move is unlikely to address the underlying issues driving the trade tensions.
As the trade war escalates, many fear it will have far-reaching consequences for the global economy and undermine trust in Trump’s ability to manage prices and drive economic growth.
Source: https://apnews.com/article/trump-tariffs-trade-china-mexico-canada-inflation-753a09d56cd318f2eb1d2efe3c43b7d4