On Saturday, U.S. President Donald Trump signed an order imposing a 25% tariff on goods from Mexico and Canada and a 10% tariff on imports from China. This move fuels the risk of a trade war, threatening to disrupt more than $2.1 trillion in annual trade.
Trump invoked the National Emergency under the International Emergency Economic Powers Act to support the tariffs, a strategy that allows significant powers to address crises. The order states that the revised tariff collection will commence at 12:01 a.m. on Tuesday.
What Did Trump Say?
Fulfilling his electoral promise, Trump described the measure as a strategy to pressure countries into halting the illicit immigration and trafficking of chemicals used in fentanyl production. Additionally, it aims to boost domestic manufacturing and increase federal revenues.
After signing the order, Donald Trump said, "This was necessary due to the grave threat posed by lethal drugs like fentanyl and illegal foreign nationals to our citizens. We must protect American citizens. As President, it is my duty to ensure everyone's safety."
Source: aajtak
White House officials informed journalists that energy imports from Canada would face only a 10% tariff, while Mexican energy imports would face the full 25% tariff. Furthermore, for Canada, they mentioned that the "de minimis" U.S. tariff exemption will be revoked for small shipments valued at less than $800.
The White House stated that there would be no exemptions from the tariffs. The order includes provisions to further increase tariffs if these countries enact retaliatory measures.
