As US tariffs on Canada and Mexico are poised to take effect, Donald Trump has threatened a 25% levy, igniting fears of a widespread trade conflict. Meanwhile, Canada prepares countermeasures, with analysts hoping for a possible negotiation truce.
US Tariffs on Canada and Mexico Set to Launch, Sparking Potential Trade War
US Tariffs on Canada and Mexico Set to Launch, Sparking Potential Trade War
Commerce Secretary confirms tariffs will take effect Tuesday, as negotiations continue amidst rising tensions.
US tariffs on Canada and Mexico are scheduled for implementation this Tuesday, as confirmed by US Commerce Secretary Howard Lutnick. The anticipated tariffs are a direct response to President Donald Trump's claims regarding the flow of illegal drugs and migrants into the United States, with the president suggesting a 25% tax on imports from both neighboring countries.
During a recent appearance on Fox News' Sunday Morning Futures, Lutnick stated, "There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate." The specifics of the tariffs remain uncertain, as negotiations are ongoing.
In addition to tariffs on Canada and Mexico, a new 10% tariff on Chinese imports is set to take effect, which could mean a total levy of 20% on Chinese exports to the U.S. Following previous trade disputes, Chinese officials are reportedly preparing countermeasures that may target American agricultural goods, heightening fears of an all-out trade war between the two nations.
Canadian officials, including Internal Trade Minister Anita Anand, have expressed that the proposed tariffs would adversely impact both economies. Canada is ready to respond if tariffs are imposed, having previously outlined a list of $30 billion worth of U.S. products subject to retaliation, including essential consumer items like clothing and food products.
Prime Minister Justin Trudeau, attending a summit in London, emphasized that Canada is not a significant source of fentanyl in the U.S., commenting that only 1% of fentanyl seized in America is believed to originate from Canada.
President Trump has also announced plans for a 25% tariff on steel and aluminum imports starting March 12 and has suggested that additional "reciprocal" tariffs may be imposed on individual countries, including a significant threat aimed at the European Union.
As negotiations continue and tensions escalate, all eyes remain on the potential outcomes of these tariff implementations and their implications for international trade relations.
