President Donald Trump has announced he will hit Mexico, Canada and China with tariffs starting tomorrow.
Trump said he will impose 25% tariffs on Mexico and Canada’s imports starting on Saturday to pressure the countries into restricting migrants and fentanyl from entering the US.
The president added that he will place an additional 10% tariff on imports from China.
‘China makes the fentanyl, gives it to Mexico, puts it through Canada, puts it through different places, mostly Mexico, but also a lot through Canada, and so all three haven’t treated us very well,’ said Trump on Friday.
White House press secretary Karoline Leavitt said that Trump is implementing the tariffs in retaliation for ‘the illegal fentanyl that they have sourced and allowed to distribute into our country’.
‘These are promises made and promises kept by the president,’ she said.
Asked if Mexico and Canada can do anything to avoid the tariffs, Trump said, ‘No, not right now.’
‘You see the power of the tariff,’ he said. ‘Nobody can compete with us because we have by far the biggest piggy bank.’
Trump said that Canadian oil imports could probably be subject to lower than the 10% rate.
Canadian Prime Minister Justin Trudeau suggested that a trade war could materialize between the neighboring nations.
‘We’re ready with a response – a purposeful, forceful but reasonable, immediate response,’ said Trudeau. ‘It’s not what we want, but if he moves forward, we will also act.’
Economists have warned that taxes on foreign goods could drive up prices for American consumers.
Canada is the largest foreign supplier of crude oil to the US, meaning the tariff could translate to higher prices at the pump for Americans.
The next biggest imports from Canada are cars and trucks as well as auto parts. More than one in five automobiles sold in the US were assembled in Canada or Mexico. The average price of cars in the US could jump by about $3,000, according to TD Economics.
Also possibly greatly impacted could prices for some groceries. Trump bashed the Biden administration for inflation and high prices for food, but many agricultural products in the US are imported. For example, 90% of avocados come from Mexico.
‘Grocery stores operate on really tiny margins. They can’t eat the tariffs,’ said Scott Lincicome with the Cato Institute.
‘You’re talking about guacamole tariffs right before the Super Bowl.’
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