President Donald Trump said Thursday that he will impose 25% tariffs on goods imported from Canada and Mexico on March 4 as he had originally planned. He said the two neighboring countries were not yet doing enough to stem the flow of drugs into the United States.
President Trump also warned on his social media platform 'Truth Social' that he would impose an additional 10% tariff on China on Tuesday, in addition to the 10% he imposed on Beijing earlier this month. China responded to the first US measure by imposing the same 10% tariff on the products.
"Drugs continue to enter our country from Mexico and Canada at very high and unacceptable levels. A large percentage of it is in the form of fentanyl and is manufactured and supplied by China," President Trump said.
Earlier this month, President Trump announced that he would impose tariffs on Canada and Mexico, two of the country's closest allies and trading partners.
But he suspended the decision for a month, until March 4, after Mexican President Claudia Sheinbaum said she would send 10,000 troops to the U.S. border to help control drug trafficking. Canadian Prime Minister Justin Trudeau also said he would appoint an official to address the fentanyl issue.
Mexico exports 80% of its products to the United States.
Ms. Sheinbaum said earlier this week that "we expect to reach an agreement with the United States," but if not, Mexico could retaliate with tariffs on American products.
When President Trump first announced the tariff on Canadian imports, Mr. Trudeau called it “totally unjustified” and promised to impose a 25% tariff in retaliation, starting March 12, on American steel and aluminum products. Canada is the top exporter of both metals to the United States.
Economists say the tariffs President Trump is imposing are likely to raise retail prices for consumers and the cost of materials for businesses. Mexico, Canada and China, in that order, are the United States' three largest trading partners, but the 27-nation European Union is the largest partner.
At the first meeting of his new cabinet on Wednesday, President Trump said he would announce a 25% tariff on goods imported from the EU "very soon."
The EU vowed to respond "firmly and immediately" to "unjustified" trade barriers and suggested it would impose its own tariffs on US imports if President Trump goes ahead with his plans.
In his announcement on "Social Truth," President Trump said that reciprocal tariffs on those countries that impose tariffs on American goods would take effect on April 2. He has also hinted at imposing tariffs on imports of automobiles, lumber, pharmaceuticals, and other goods.
Many economists have repeatedly warned that tariffs could lead to higher prices, fueling inflation in the U.S. President Trump has acknowledged that such a move could cause short-term pain for Americans, but he has added that tariffs would ultimately be beneficial for the world's largest economy.
President Trump says the tariffs would be an incentive for foreign companies to produce more in the United States as a way to avoid them. /VOA (A2 Televizion)
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