₦airaland Forum

Trump announces significant new tariffs on Mexico, Canada and China

By Samantha Waldenberg, Kevin Liptak, Alayna Treene and David Goldman, CNN

President Donald Trump speaks to reporters at the White House in Washington, DC, on January 30.

President Donald Trump announced extraordinary new tariffs on Mexico, Canada and China — signing the long-promised economic policy at his Mar-a-Lago club on Saturday. The Trump administration said tariffs are aimed at curbing the flow of drugs and undocumented immigrants into America, but they potentially risk substantial price increases for American consumers across a wide array of common goods.

The new policy represents a reversal of virtually duty-free trade between the three North American nations that’s existed for several years — and an expansion of a frosty trade war between China and the United States that has escalated over the course of the past two administrations.

As Trump has repeatedly promised over the past several months, the tariffs will amount to a significant 25% duty on all imports from Mexico and most goods from Canada and a 10% tariff on Chinese goods imported into the United States. Although Trump administration officials said Saturday the tariffs were designed to stop the flow of fentanyl and undocumented immigrants, they gave no specific benchmark for the new import taxes to be lifted — other than the cessation of the drugs and undocumented immigrants coming into the country.

The tariffs are expected to invite retaliation, perhaps igniting a trade war that could significantly damage the economies of the targeted countries and the United States. In anticipation of that, Trump’s executive action includes a clause that allows the president to expand the tariffs if a country imposes new tariffs on the United States.

Notably, the tariffs included an important carve-out — the tariff on Canadian energy products will be 10%. Many Americans rely on Canadian energy products, including oil, electricity, natural gas, for fuel and home heating. The cost of those items could rise when the tariffs are put in place.

To put the tariffs in place, Trump in his executive action declared a national economic emergency, invoking the International Emergency Economic Powers Act, known as “IEEPA,” which unilaterally authorizes a president to manage imports during a national emergency. The tariffs are set to go into effect on Tuesday morning at 12:01 am ET.


"Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China,” Trump said in a message posted to Truth Social on Saturday. “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. We need to protect Americans, and it is my duty as President to ensure the safety of all.”

Saturday’s tariffs amount to a starting gun on what could escalate into a global trade war, perhaps inviting retaliation from Mexico, Canada and China in the form of higher tariffs on goods that the United States exports to those countries. That could lead to potentially much higher costs, disrupted supply chains and the loss of jobs. In a call with reporters Saturday, a Trump administration official said any retaliation from Mexico, China or Canada would likely result in even higher tariffs for that country. Even Trump acknowledged the potential for adverse consequences on American consumers.

"There could be some temporary, short-term disruption, and people will understand that,” Trump said Friday when pressed by reporters on the cost of tariffs being passed on to importers, and, by extension, consumers. “But the tariffs are going to make us very rich and very strong — and we’re going to treat other countries very fairly.”

Canadian Prime Minister Justin Trudeau, in anticipation of Trump’s actions, has said previously that Canada would retaliate forcefully and swiftly if the United States imposed tariffs. The country’s trade representatives met with Trump administration officials as recently as Friday in an attempt to stave off the tariffs.

Jonathan Wilkinson, Canada’s natural resources minister, said in a post on X that Canada did “nothing to provoke tariffs” from the United States but is “prepared and ready to fight” for its residents.

Tariffs are one of the few policies Trump has consistently supported for decades, a rare through-line from his days as a New York developer to his time in public office (another is immigration). As a candidate, he swore he’d use tariffs — “the most beautiful word in the dictionary” — to wield US leverage abroad.

And in 2023, Mexico overtook China as the top nation exporting goods to the US, marking the first time in two decades China was not the top-ranking exporter. Tariffs the first Trump administration put in place, which the Biden administration largely maintained, have negatively impacted the amount of goods the US imports from China. Mexican and Canadian goods have been imported in the US virtually duty-free as a result of the United States-Mexico-Canada Agreement, that Trump negotiated with America’s bordering nations during his first administration.

Mexico maintained that top position last year as well, exporting $467 billion worth of goods to the US, followed by China and Canada, which exported $401 billion and $377 billion worth of goods, respectively.

That’s according to Commerce Department figures from last year through November, the most recent month of available data. Collectively, the three countries accounted for 42% of the nearly $3 trillion worth of goods the US imported worldwide last year.

Canada was the top country the US exported goods to last year, valued at $322 billion, followed by Mexico and China, which received $309 billion and $131 billion worth of goods from the US, respectively. US exports to the three countries accounted for over 40% of the $1.9 trillion worth of goods the US exported globally last year.

SOURCE: https://cnn.it/4jRh74m

Trump is starting a trade war

this village stewpid GOAT go wreck USA economy with his DUMBNESS . Wen everybody don hide/run from work;him eyes go clear

Chibuzoripob:
this village stewpid GOAT go wreck USA economy with his DUMBNESS . Wen everybody don hide/run from work;him eyes go clear

Morafvcker going to find out the hard way!

Grab your pop corn and wait for Canada, Mexico and China’s retaliation!

It’s gonna be a cold winter!

Why you shouldn’t fvcking vote an illiterate into power. Morafvcker still doesn’t know how tariffs work! One who will increase tariffs at a point when inflation is cooling off, and so stupid to do it with his biggest trading partners.

Europe better be learning and bracing up. The convicted felon is going to throw them under the bus.

CoronaVirusPro:
Morafvcker going to find out the hard way!

Grab your pop corn and wait for Canada, Mexico and China’s retaliation!

It’s gonna be a cold winter!

Why you shouldn’t fvcking vote an illiterate into power. One who will increase tariffs at a point when inflation is cooling off, and so stupid to do it with his biggest trading partners.

The tariffs are expected to invite retaliation, perhaps igniting a trade war that could significantly damage the economies of the targeted countries and the United States. In anticipation of that, Trump’s executive action includes a clause that allows the president to expand the tariffs if a country imposes new tariffs on the United States.

Ahmback:
The tariffs are expected to invite retaliation, perhaps igniting a trade war that could significantly damage the economies of the targeted countries and the United States. In anticipation of that, Trump’s executive action includes a clause that allows the president to expand the tariffs if a country imposes new tariffs on the United States.

Every other president can expand tariffs too. Trump does not have a monopoly of that.

CoronaVirusPro:
Every other president can expand tariffs too. Trump does not have a monopoly of that.

...And so the trade wars continue

He has also threatened to tarriff the EU.

Good.

Trump must show them pepper.

The damage Trump is doing to the US is incalculable.
He is turning US allies into enemies for what purpose?

Americans voted for this buffoon, let the drama continue, US consumers will be the most affected.

This is how Buhari destroyed Nigerian economy with his yeye policy now look at where we are.

Trump is doing the same too, Americans will witness the highest level of inflation ever in the US, months to come. Because it doesn't seems right to be fighting everyone at the same time.

Good

Ahmback:
The tariffs are expected to invite retaliation, perhaps igniting a trade war that could significantly damage the economies of the targeted countries and the United States. In anticipation of that, Trump’s executive action includes a clause that allows the president to expand the tariffs if a country imposes new tariffs on the United States.

Trump na mad man and he will be humbled soon

This movie go to sweet.

Trump means business...

FunnyDude:
This is how Buhari destroyed Nigerian economy with his yeye policy now look at where we are.

Trump is doing the same too, Americans will witness the highest level of inflation ever in the US, months to come. Because it doesn't seems right to be fighting everyone at the same time.

Fighting everyone at the same time is not a strategy.

God1000:
Americans voted for this buffoon, let the drama continue, US consumers will be the most affected.

We didn’t . Not enough for him to win anyway. Him and Elon were bragging about how they didn’t need votes to win so only Dem and God knows

Chibuzoripob:
this village stewpid GOAT go wreck USA economy with his DUMBNESS . Wen everybody don hide/run from work;him eyes go clear

I highly doubt that. Business wise, Trump is one of the best. He's not emotional like a lot of Nigerians.

If I was the American president and i wanted to apply 10% tariff on Chinese goods, I'd need to make sure that the Chinese goods don't get smuggled in through my neighbors.

I can either, close the borders like Buhari/Tinubu or impose higher tariffs on my neighbors to restrict the movement of the Chinese goods taking advantage of my trade agreements with my neighbors.

I've been to America and Canada and I can tell you that you'll find more Canadian and Chinese goods than American. I have friends that would drive across the border to buy stuff in America.

Down in Texas, El Paso is overrun with Mexican goods. Lovely quality too as they do well to meet high standards of the American. The economy of Texas is bigger than the whole of Canada combined.

Mexico and Canada and cannot withstand a trade war with America. The CAD had been on a stready decline nearing an all time low of 1.45 against the dollar.

Negotiate with Trump and allay his fears. Offer solutions to his concerns instead of getting emotionally charged up.

His target is mainly China and they are getting set to sue him already. 😁

IjeBos:
The damage Trump is doing to the US is incalculable.
He is turning US allies into enemies for what purpose?

For the benefit of his sponsors