Trump to impose tariffs on Canada, Mexico, China starting Saturday
What's the story
United States President Donald Trump has announced new tariffs on imports from Canada, Mexico, and China. White House press secretary Karoline Leavitt said that goods from Canada and Mexico will face a 25% tariff while Chinese products will be levied a 10% tariff. The administration did not offer the details of the tariffs, which Trump has repeatedly claimed will start on February 1. Trump also hinted at possible tariffs on oil imports from Canada around February 18.
Retaliation plans
Canada, Mexico, China prepare for retaliation
In wake of the new tariffs, Canadian Prime Minister Justin Trudeau has promised a "forceful but reasonable" response. Mexico is also preparing its retaliation plans but hasn't disclosed any details yet. China, however, has vowed to "firmly defend" its interests against these US actions. The tariffs are part of Trump's plan to push Canada and Mexico to tighten border controls and stop drug smuggling.
Economic impact
Tariffs could disrupt supply chains, fuel inflation
Trump has maintained that "the tariffs are going to make us very rich and very strong." However, economists have cautioned that these moves could upend supply chains and stoke inflation. Trade analysts also fear retaliatory moves from impacted nations. After the announcement of the new tariffs, stocks on Wall Street slipped with the Dow Jones industrial average closing down 0.75%.
Tariff coverage
Plan could cover over $1.3 trillion in US imports
If fully implemented, Trump's tariff plan could cover more than $1.3 trillion in US imports. The amount exceeds the $360 billion in duties imposed on Chinese goods during his first term. The announcement has already resulted in reduced orders and workforce cuts at factories in China, with some firms shifting production to Southeast Asian countries like Vietnam and Cambodia amid uncertainty.
Currency warning
Trump warns BRICS nations against replacing US dollar
Along with the new tariffs, Trump has also warned BRICS nations of 100% tariffs if they try to replace the US dollar in international trade. He wrote on his social media platform Truth Social that "there is no chance that BRICS will replace the US dollar in international trade." "The idea that the BRICS Countries are trying to move away from the Dollar...is OVER," he asserted.