There have been weeks of rumors about whether the measures could be avoided, but now that US President Donald Trump has announced that massive 25 percent tariffs on Mexico and Canada will go into effect tomorrow.
The announcement on Monday comes shortly after Trump administration officials suggested Trump might impose lower tariffs than previously anticipated. However, when Trump spoke to White House reporters, he appeared determined to follow through with the higher rate.
“Tomorrow, tariffs will be 25% higher on Mexico and 25% on Canada.” And that will begin, Trump said.
When asked if there was still room for negotiation, the US president responded, “No room left.” The prices are all set. Tomorrow they take effect.
Trump added an additional 10% to the initial 10% he added to the tariffs he implemented last month.
The US President has pledged to impose the 25% tariffs on all imports from Mexico and Canada, with 10% on Canadian energy. He has used the threats as a means of putting pressure on both nations to increase immigration and drug trafficking into the US.
Trump had intended to start imposing the tariffs in February, but he put off the move after both nations agreed to implement specific border control measures.
Mexican President Claudia Sheinbaum stated earlier on Monday at her daily press conference that while Trump had made strong arguments against halting the tariffs, it was also ready to take any course taken.
Whatever his choice is, we will make them, Sheinbaum said, and there is a plan and Mexico’s unity.
Melanie Joly, Canada’s foreign minister, later assured reporters that the administration was prepared to take retaliatory measures.
She reiterated Ottawa’s assertion that US imports could be worth up to $106 billion.
Prior to the tariffs being canceled last month, Canadian officials had a plan to target imports from Republican Party strongholds. If they would act similarly this time around, it was unclear.
CEOs and economists have warned that the tariffs, which cover more than $ 900 billion in annual US imports from its southern and northern neighbors, would severely degrade the highly integrated North American economy.
Commerce Secretary Howard Lutnick had indicated on Sunday that Trump might not impose tariffs in full.
Trump is considering what the final tariff levels should be, according to him, telling Fox News that Mexico and Canada have “done a reasonable job” of securing their US borders.
He said at the time that “he’s sort of thinking about how exactly he wants to play with Mexico and Canada,” and that’s a dynamic situation. On Tuesday, tariffs will be imposed on Mexico and Canada. We’ll leave the president’s team to negotiate what exactly they are.
The course that he has chosen, exactly?
Trump has generally pledged to reform nearly all trade agreements since taking office, claiming that its constellation of agreements unfairly treat the US.
That raises the possibility of repeated trade wars that might stifle the world economy.
Given the complex interdependencies between the three countries’ industries and economies, Trump’s emphasis on Mexico and Canada was particularly surprising.
Mexico and Canada announced a number of initiatives last month to meet Trump’s demands regarding immigration and drug trafficking in response to the threat.
Mexico has also sent ten thousand members of the National Guard to its US-domicile border. 29 drug cartel members were also extradited to the US last week by Mexico.
Despite US authorities seizing less than 20 kg (44 pounds) of the opioid smuggled from Canada between October 2023 and September 2024, Canada has appointed a so-called “fentanyl czar” among other measures.
On Friday, senior Canadian and Mexican officials met with Trump’s cabinet to discuss their response.
Despite concerns over a potential domestic economic collapse, Trump adviser Peter Navarro said on Monday that it was unlikely that Trump would back down from his threats.
Source: Aljazeera
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