By JOSH BOAK, AAMER MADHANI, and ZEKE MILLER, Associated Press
Washington (AP) The White House announced that President Donald Trump will impose 10% tariffs on Chinese goods and 25% tariffs on Canadian and Mexican imports starting on Saturday. However, it did not specify whether there would be any exceptions to the measures, which could lead to rapid price increases for American consumers.
Trump has promised to employ tariffs to increase local manufacturing and increase federal revenue, but he has also threatened to impose them in order to get more cooperation from the nations in preventing illegal immigration and the smuggling of ingredients used to make fentanyl.
White House press secretary Karoline Leavitt informed reporters that such tariffs would take effect tomorrow. The president has made and fulfilled these commitments.
Trump, only two weeks into his second term, faces economic and political dangers as a result of the tariffs. The Republican’s pledge to control inflation won him the support of many people, but the prospect of tariffs might raise prices and possibly cause disruptions in the energy, auto, lumber, and agriculture industries.
Leavitt stated that she was unable to provide any information regarding the president’s decision regarding any possible carveouts, despite Trump having stated that he was considering granting an exemption for oil imports from Canada and Mexico.
In October, the Energy Information Administration reported that the United States imported 563,000 barrels of oil from Mexico and about 4.6 million barrels per day from Canada. During that month, the average daily production in the United States was around to 13.5 million barrels.
Trump has previously declared that additional import tariffs on Chinese goods would be accompanied by a 10% tariff on Chinese imports.
The S&P 500 stock index dropped sharply shortly after Leavitt’s remarks, essentially wiping out the day’s gains.
Both Canada and Mexico have stated that they are ready to deploy retaliatory tariffs if needed. This might lead to a wider trade war, which according to economic evaluations could hinder economy and hasten inflation.
Although he did not provide specifics, Canadian Prime Minister Justin Trudeau stated on Friday that his country is prepared to respond if Trump moves forward with the tariffs.
He declared, “We’re prepared with a response, a deliberate, firm but reasonable, quick response.” Even though we don’t want it, we will take action if he does.
Tariffs, according to Trudeau, would have catastrophic effects on the United States, endangering American jobs and driving up costs. Less than 1% of fentanyl and unlawful crossings into the United States originate in Canada, Trudeau reaffirmed.
Though she stressed that Mexico has a Plan A, Plan B, and Plan C for whatever the US government decides, Mexican President Claudia Sheinbaum stated on Friday that Mexico has been in communication with Trump’s staff since before he came to the White House.
Now, it is crucial that the Mexican people understand that we will always stand up for the respect of our sovereignty, the dignity of our people, and an equal conversation, as we have always stated, without subordination, Sheinbaum said.
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