U.S. imposes 25% tariff on Canada and Mexico, 10% on China
Washington, D.C.: Moving forward with his plan, U.S. President Donald Trump Saturday announced a 25% tariff on goods from Canada and Mexico. He also imposed 10% tariffs on items imported from China, escalating the possibility of a trade war between the United States and these countries. The U.S. has imposed a 10% tariff on Canadian energy.
Trump has signed executive orders to implement his decision. It is expected that the annual $2.1 trillion trade could be disrupted due to this move. After winning the U.S Presidential election in November last year, Trump warned Canada and Mexico of potential tariffs on their products. He had said he would sign an executive order in this regard on his first day in office. However, on January 20, 2025, after being sworn in, Trump said, “I think tariffs will come on February 1, 2025.”
Trump has repeatedly said that Canada and Mexico have failed to curb the flow of drugs and illegal immigrants into the U.S. from their territories. Experts believe that the decision will drive up the prices of imported items and this will impact American consumers.
The U.S. President has been trying to save domestic industries from being indulged in an import competition. There are concerns that the decision could further increase inflation for Americans, who are already struggling due to rising prices.
The U.S. imports 4.6 million barrels of oil from Canada and 563,000 barrels from Mexico per day. With tariffs, oil prices may rise. Meanwhile, the prices of electronics, clothing, and other consumer goods imported from China will also go up.
On Truth Social, Trump wrote, “Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl.”
He further wrote that they need to protect Americans and it is his duty as President to ensure the safety of all. Trump said, “I made a promise on my campaign to stop the flood of illegal aliens and drugs from pouring across our borders, and Americans overwhelmingly voted in favor of it.”
