The White House said Friday that President Donald Trump would impose a 25% tariff to the goods that arrive in the United States from Canada and Mexico and a 10% rate on China on Saturday, a measure that could increase prices of the products that arrive in the United States. of those countries.
Trump had previously said that he would broadcast those rates the first day of his presidency and then said on the day of the inauguration that the tariffs would be implemented on February 1. The White House Secretary, Karoline Leavitt, told journalists on Friday that Trump would continue that deadline of February 1.
Leavitt said that tariffs were being implemented in response to “the illegal fentanyl they have obtained and allowed to distribute to our country that has killed dozens of millions of Americans.”
Tariffs could increase the number of US consumers and companies that pay for goods from Canada, Mexico and China, including electronic products, toys, shoes, fresh products, wood and cars. Companies that import goods to the US. UU. Pay tariffs, similar to a tax.
While some companies will look for goods in another place, others without alternatives will be forced to pay the rates. Companies will have to decide whether to pass these higher costs to consumers or absorb them, which will abalotate or require cuts to protect their margins. The implications could be of great reach throughout the economy of the United States, partly because US consumers and companies imported more goods from Mexico than any other country.
When asked about impact tariffs on inflation, Leavitt cited relatively low inflation during Trump’s first mandate when he placed tariffs to billions of Chinese products.
“President Trump will do everything possible to reduce the inflation crisis that the previous administration imposed on the US people, and will continue to use rates effectively,” Leavitt said.
Tariffs during the Trump’s first term were more limited in scope than the current proposal and included a long list of exemptions and delays for certain products and industries. Economists have discovered that these rates increased the prices of some imports, led to a net loss of manufacturing jobs and reduced corporate investments as a result of the highest costs that companies had to pay to import materials and parts.
Mexico and Canada have threatened to retaliate with their own tariffs on US imports, which could harm US companies that sell those countries, as oil producers, farmers and manufacturers.
“If the president chooses to implement any tariff against Canada, we are ready with an answer. An immediate intentional, forceful but reasonable response, “Canadian Prime Minister Justin Trudeau said Friday.” We will not give up until tariffs are eliminated and, of course, everything is on the table. ”
During Trump’s first mandate, China put tariffs on American agricultural products, and almost all income raised by the United States on China’s tariffs went to payments to US farmers to compensate for their losses of those Chinese tariffs.
The automotive industry of the United States is among the most vulnerable to the tariffs of Mexico and Canada. For decades, their supply chains have been strongly intertwined with the residents of the United States to the north and south. As vehicles and components cross several times during the production process, repeated repetitions of 25% could quickly increase vehicle costs.
The United States also depends on the agricultural products of Mexico, one of the main suppliers of tomatoes, avocados, berries and peppers. The increase in food prices has been a great concern for consumers and voters, with supermarket costs in about 25% in the last four years, a problem that Trump hit the campaign.
Tariffs in Canada could also increase oil prices imported from Canada and Canadian wood, which could increase the cost of new homes and other construction projects.
