Trump's tariffs on Canada, China, and Mexico likely to take effect today

US President Donald Trump's decision to impose a 25 per cent tariff on imports from Canada and Mexico and a 10 per cent tariff on goods from China will likely become effective today, according to a White House statement released Friday.

 

However, the White House statement does not provide any information on "whether there would be any exemptions to the measures that could result in swift price increases for US consumers".

 

Trump, the 47th US President and a Republican, has been threatening to impose tariffs to ensure there is greater cooperation from the countries to stop illegal immigration into the US, along with the smuggling of chemicals used for fentanyl.  Another reason for Trump to impose tariffs includes his pledge to boost domestic manufacturing. 

 

 

On Thursday, Trump said, "We'll be announcing the tariffs on Canada and Mexico for several reasons. "I'll be putting the tariff of 25 per cent on Canada and Mexico, and we will have to do that because we have very big deficits with those countries."

 

Previously, Donald Trump had said that he was weighing issuing an exemption for Mexican and Canadian oil imports. The US imported almost 4.6 million barrels of oil daily from Canada in October and 563,000 barrels from Mexico, according to the Energy Information Administration. US daily production during that month averaged nearly 13.5 million barrels a day.

 

Canada's response to Trump tariffs

 

Canada's beleaguered Prime Minister Justin Trudeau recently said that their response will be 'forceful but reasonable" if Trump decides to impose tariffs. "If the president does choose to implement any tariffs against Canada, we're ready with a response -- a purposeful, forceful but reasonable, immediate response," Trudeau told reporters before a meeting with his advisory council on Canada-US relations on Friday, according to a report.

 

The report further mentions that Trump's decision to impose tariffs will damage the US economy along with Canada's and undermine the collective security of the two nations.

 

Trudeau added that Canada would keep making its case that trade with Canada is good for the long-term prosperity and security of the United States, noting Canada's steel and aluminum, critical minerals and clean energy, as well as its "stable democratic institutions, shared values and the best workers in the world."

 

"If the tariffs are implemented against Canada, we will respond. We won't relent until tariffs are removed and, of course, everything is on the table," Trudeau said.  (with agency inputs)