Trump enacts tariffs on Canada, Mexico, China

Trump enacts tariffs on Canada, Mexico, China
February 1st, 2025

WHITE HOUSE - On Saturday, U.S. President Donald Trump signed an order that imposes 25% tariffs on imports from Canada and Mexico and 10% tariffs on goods from China, the White House said.

The two countries, Canada and Mexico, have allowed an unprecedented number of fentanyl that is killing American citizens and illegal immigrants into our country,' White House press secretary Karoline Leavitt said during her briefing Friday.

Leavitt didn't know whether there would be any exemptions to the measures. It's 'these are promises made and promises kept by the president,' she said.

On Friday, reporters asked Trump if there was anything the three countries could do to counter his decision and whether the tariffs were a 'negotiating tool.' He responded, 'No.

He explained that there is 'no chance' because 'we have big deficits with, as you know, with all three of them.' We aren't looking for a concession, and we'll just see what happens.

From Saturday, Trump said he would tariff Canadian crude oil imports at 10 per cent. Other Canadian goods would be hit by a 25 per cent tariff.

The president promised to impose tariffs on semiconductors, pharmaceuticals, steel and aluminum, oil and gas. I'm going to tariff all forms of medicine and pharmaceuticals,' he said. 'And we'll be doing, very importantly, steel, and we'll also be doing chips and things associated with chips.'

It is still planned to implement the tariffs on Tuesday.

He said he would 'absolutely' place tariffs on goods from the European Union. They are treating us so badly,' he said.

Outgoing Canadian Prime Minister Justin Trudeau said his country would respond. Right now, we're working hard to prevent these tariffs, but if the United States moves ahead, Canada's ready with a forceful and immediate response,' he posted on social media.

However, Mexico had a more subdued response. The economic ministry of Mexico posted a message on social media stating, 'Mexico and United States are partners and not competitors.'

It is wrong to say that tariffs are good for the economy.

More than one-third of the goods and services imported or bought from the United States are from China, Mexico, and Canada. Some economists think the tariffs are a bad idea. Import and exports from Mexico and Canada account for roughly 3% of the U.S. Gross Domestic Product (GDP), while imports and exports generate approximately 2.5% of the U.S. GDP, said Brad Setser, a senior fellow at the Council on Foreign Relations. The 25% tariff on Mexico and Canada is a 'tax increase on imports from these countries,' he said, and it will 'have a negative impact on the U.S. economy right away.' It is a strategy for shrinking the U.S. economy.' He told VOA The president has wanted to impose tariffs to put pressure on countries to help his administration stop illegal immigration and the smuggling of chemicals used for fentanyl. He has promised to use tariffs to increase domestic manufacturing and has defended the use of tariffs as a sound economic policy. Trump has said, 'Tariffs are a great source of leverage,' and he will be able to 'get Canada and Mexico to make big concessions under the threat of tariffs,' Setser said. However, these measures are going to be pretty costly to the U.S. Trump said the tariffs may cause a'short-term disruption' for consumers but that it would result in a long-term gain for U.S. manufacturing. It doesn't cause inflation, tariffs cause success,' he said. During his first administration in 2018, Trump negotiated and signed the United States-Mexico-Canada free trade agreement, in part to narrow the United States' big trade deficit — the gap between what it sells and what it buys — with its neighbours. He once called the deal 'the fairest, most balanced and most beneficial trade agreement we have ever signed into law.' However, the U.S. trade deficit in goods with Mexico has grown from $106 billion in 2019 to $161 billion in 2023, according to government data. It has also increased in goods with Canada, from $31 billion in 2019 to $72 billion in 2023. He's now acting like his deal caused a disaster, which requires an emergency fix,' said Derek Scissors, senior fellow at the American Enterprise Institute. There's no argument for high tariffs on Canada, a market economy that isn't in the top five of U.S. trade deficits, he said. 'Fentanyl shipments across the Canadian border are tiny,' he added. The justification for border restrictions on Mexico is fentanyl and illegal migration, Scissors said. However, tariffs 'don't stop illegal immigration and probably encourage it by threatening jobs in Mexico.' The stock market opened higher on Friday but turned negative and closed lower after the White House announcement on tariffs.

Shandor Brenner

Shandor Brenner is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.

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