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Home | Trump to Impose Heavy Tariffs on Mexico, Canada, and China, Sparking Trade War Concerns

Trump to Impose Heavy Tariffs on Mexico, Canada, and China, Sparking Trade War Concerns

The Pop RadarBy The Pop RadarFebruary 1, 2025No Comments3 Mins Read
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Trump readies order for steep tariffs on goods from Mexico Canada China
Trump readies order for steep tariffs on goods from Mexico Canada China
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WASHINGTON,- U.S. President Donald Trump is expected to sign an executive order on Saturday imposing significant new tariffs—25% on goods from Mexico and Canada, and 10% on imports from China. The move could disrupt over $2.1 trillion in annual trade, marking a major escalation in global trade tensions.

Trump Pushes Trade Measures Amid Border and Drug Control Demands

Trump, who is spending the weekend at his Mar-a-Lago estate in Florida, stated on Friday that the tariffs would go forward despite opposition from the U.S.’s three largest trading partners. He set the February 1 deadline as a pressure tactic to force China, Mexico, and Canada to curb the flow of fentanyl and its precursor chemicals into the U.S., as well as to take action against illegal immigration across both the northern and southern borders.

While some speculated that the tariff threats were a negotiating strategy, Trump dismissed this notion, saying, “No, it’s not … we have big (trade) deficits with all three of them.” He also suggested that tariffs could be raised further, stating, “But it’s a lot of money coming to the United States.”

Partial Exemptions and Market Reactions

Trump mentioned a possible exemption for Canadian oil, which would face a lower 10% tariff rather than the standard 25% on other Canadian imports. However, he also hinted at broader tariffs on oil and natural gas coming in mid-February, causing crude oil prices to rise.

U.S. stock markets ended lower on Friday after news of the impending tariffs, reflecting investor concerns over economic disruptions.

Potential Impact on Consumers and Industries

The tariffs could significantly raise costs for consumers and businesses. Jake Colvin, president of the National Foreign Trade Council, warned that the tariffs could affect the prices and availability of everyday goods, from avocados to air conditioners.

While Trump has framed the tariffs as charging other nations, the reality is that U.S. importing companies will bear the costs, likely passing them on to consumers. Automakers, in particular, are expected to face major financial setbacks due to increased costs on vehicles assembled in Canada and Mexico, where parts cross borders multiple times before final assembly.

Further Tariff Plans on the Horizon

Trump also hinted at expanding tariffs beyond North America and China. He suggested potential import taxes on European goods, steel, aluminum, copper, pharmaceuticals, and semiconductors.

White House spokesperson Karoline Leavitt confirmed that the tariffs would take effect immediately, with detailed plans to be published on Saturday.

Retaliation from Trading Partners Expected

Canada, Mexico, and China are preparing countermeasures in response to Trump’s move.

  • Canada has outlined detailed retaliatory tariffs, including duties on Florida orange juice, and is considering additional measures on up to C$150 billion ($103 billion) worth of U.S. imports, pending public consultation.
  • Mexico has signaled potential retaliation, though President Claudia Sheinbaum has stated that she will take a measured approach and remain open to negotiations.
  • China has strongly opposed the tariffs, though Beijing has not disclosed specific retaliation plans. A spokesperson for the Chinese embassy in Washington reaffirmed that “there is no winner in a trade war or tariff war, which serves the interests of neither side nor the world.”

As the global trade landscape faces heightened uncertainty, the effects of these tariffs and the responses from international trading partners remain to be seen. ($1 = 1.4524 Canadian dollars)

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