Canada and Mexico Face Tariffs on Saturday, White House Says
US President Donald Trump is set to impose tariffs on Canada and Mexico on Saturday, with 25% tariffs on Mexico, 25% on Canada, and 10% on China, according to the White House. However, Trump announced on Friday that Canadian oil would be subjected to a lower tariff of 10%, which is expected to take effect on February 18. The move has sparked concerns, as Canada and Mexico are major trade partners of the US.
White House press secretary Karoline Leavitt explained that the tariffs on Canada and Mexico were in response to the illegal fentanyl trade, which has been linked to the opioid crisis in the United States. Trump has also pointed to the issue of undocumented migration and trade deficits with these neighbors as reasons for the tariffs. Despite these concerns, Canada and Mexico are prepared to retaliate with their own measures if the tariffs go into effect.
In addition to targeting Canada and Mexico, President Trump has expressed plans to impose tariffs on the European Union, claiming that the bloc has treated the US unfairly. These moves are part of a broader strategy that has included escalating tariffs on Chinese-made products since Trump’s first term. The new tariffs, especially on Canada and Mexico, have raised concerns about the potential for a major trade war that could hurt global markets.
Canada and Mexico, along with China, are the US’s top trading partners, accounting for a significant portion of imports into the country. While Canadian Prime Minister Justin Trudeau and Mexican officials have expressed disappointment, both countries have indicated they would respond with countermeasures. As tensions rise, the impact of tariffs on Canada and Mexico could be felt globally, with the potential to raise prices for US consumers and disrupt economic growth.
Trump’s decision to impose tariffs on Canada and Mexico could also undermine his promises to lower the cost of living in the US, as the cost of imported energy—especially oil from Canada and Mexico—may increase. While tariffs are meant to encourage consumers to buy local products, they could ultimately raise the prices of goods like gasoline and groceries, impacting American families.
As discussions continue, both economic experts and leaders like Mark Carney warn that the tariffs could harm US economic growth and damage its international reputation. The situation remains fluid, with Canada and Mexico poised to act in response to the US’s tariff plans.
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