Trump Delivers on First Promise: 25% Tariff on Canada & Mexico, 10% on China
U.S (The Uttam Hindu): On Saturday, U.S. President Donald Trump signed an order imposing a 25% tariff on imports from Mexico and Canada and a 10% tariff on imports from China. This move has raised concerns about a potential trade war, which could impact $2.1 trillion in annual trade. Speculation about such measures had been ongoing since Trump took office.
Trump invoked the International Emergency Economic Powers Act (IEEPA) to declare a national emergency, granting him broad authority to address crises. According to the order, the new tariffs will take effect starting Tuesday. During his election campaign, Trump had pledged to implement such trade measures. However, this decision is expected to drive up prices for American consumers. Trump described the tariffs as a strategic move to pressure foreign governments to curb illegal migration and restrict the smuggling of chemical components used in fentanyl production. Additionally, the measure aims to promote domestic manufacturing and increase federal revenue.
After signing the order, Trump stated, "This action is necessary because illegal immigration and the flow of deadly drugs, especially fentanyl are endangering American lives. It is my responsibility to protect the American people and I will ensure that happens."
According to White House officials, energy products from Canada will face a 10% tariff while Mexican energy imports will be subject to the full 25% tariff. Furthermore, the "de minimis" tariff exemption, which allows duty-free imports of small shipments valued at less than $800 from Canada will be revoked. The White House also indicated that tariffs could be raised further if any of these countries retaliate.
Regarding China, the White House emphasized, "President Trump is imposing a 10% tariff on imports from China. This policy will remain in place until we receive full cooperation from the Chinese government in addressing the fentanyl crisis. China plays a central role in this crisis, which is devastating American communities."
In response, Canadian Prime Minister Justin Trudeau criticized the decision, stating that while Canada did not seek this outcome, it is prepared to handle the situation. "The United States has confirmed that it will impose a 25% tariff on food and a 10% tariff on energy effective February 4. I met with provincial premiers and cabinet members today and I will be speaking with Mexican President Claudia Sheinbaum soon. This is not what we wanted but Canada is ready. I will address Canadians later this evening," Trudeau said.
