US Tariffs Take Center Stage: Heavy Duties Imposed on Canadian, Mexican, and while Chinese Imports Spark Trade Tensions”

Last Updated on 2 months by abdirahman dahir

US Slaps 25% Tariffs on Neighbors, 10% on China as Trudeau Vows ‘Firm Yet Fair’ Response

The White House announced that Donald Trump will enforce broad Us tariffs on Canada, Mexico, and China starting Saturday, potentially igniting a major trade war with key U.S. partners.

Press Secretary Karoline Leavitt announced Friday that U.S. imports from Canada and Mexico will face a 25% tariff, while goods from China will be subject to a 10% levy.

Canada has promised a “forceful but reasonable” response, while Mexico has prepared countermeasures but withheld details. China, meanwhile, promised to “firmly defend” its interests.

Trump has claimed imposing duties on goods from foreign will raise hundreds of billions of dollars for the federal government, while forcing countries – even two of America’s closest allies – to bend to his demands.

Economists have consistently warned that higher us tariffs, central to Trump’s economic strategy, could get up-and-go up prices for millions of Americans, undermining his promise to reduce costs amid growing concerns over the cost of living.

Investors are showing concern as well, with stocks on Wall Street dropping following the White House press briefing, causing the Dow Jones industrial average to fall by 0.5% in New York.

Following his election win in November, President Trump focused on Canada, Mexico, and China, demanding more action to stop “illegal aliens” and drugs like fentanyl from entering the U.S. He initially promised to impose us tariffs immediately after taking office but later postponed them to February 1.

Trump, who future a 20% universal tariff on all imports during his re-election campaign, has indicated that other major markets, including the European Union, are also targeted for future tariffs.

In his inaugural address, President Trump outlined his plan to reshape the U.S.’s economic relationships globally, stating, “Instead of taxing our citizens to develop other countries, we will tariff and tax foreign countries to enrich our citizens.” He claimed this strategy would result in “huge amounts of money pouring into our Treasury from foreign sources.”

Us Tariffs are imposed on the importer, not the exporter, meaning U.S.-based firms will tolerate the cost, which is often passed on to consumers. Economists warn that raising duties on imports could worsen inflation.

Undeterred, Trump has started consultations on establishing an “External Revenue Service” to oversee the collection of tariffs.

The conservative Tax Foundation estimates that Trump imposed around $80 billion in tariffs on $380 billion worth of products in 2018 and 2019, calling it “one of the largest tax increases in decades.” The Biden administration maintained most of these tariffs and raised duties on an additional $18 billion of Chinese goods, including semiconductors and electric vehicles.

In a speech previous this week, Trump claimed his officials would introduce us tariffs on overseas semiconductors, drugs, and steel “very soon”, singling out Taiwan and suggesting that such duties would incentivize manufacturers to make such goods in the US.

Imposing tariffs, at least using the conventional playbook, takes time. A necessary investigation requires 270 days by the act. But Trump’s officials have reportedly been traveling other options, such as the declaration of an economic emergency, in an attempt to move more quickly.

U.S. importers, or their customs dealers, must submit an entry summary to Customs and Border Protection for goods arriving in the U.S. This summary includes details about the shipment, such as its contents, value, and origin. Goods are assigned a specific code from the Harmonized Tariff Schedule, which determines the valid tariff rates.

Importers are responsible for paying the duties calculated on the value of the goods they have imported.

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