US President Donald Trump has imposed a 25% tariff on Canada and Mexico and a 10% tariff on China, on Saturday, February 1, through an executive order. When Trump was asked if these countries could do anything to delay the tariffs, he responded, “No, they can’t do anything now.”
On Friday, White House spokesperson Carolyn Levitt stated that this was because illegal fentanyl drugs were entering the US from these nations, resulting in the deaths of millions of Americans.
Canada, Mexico vow retaliatory tariffs in response
Earlier, Canadian Prime Minister Justin Trudeau said that we do not want this to happen, but if they proceed, “we will also take action”. According to media reports, Canada may impose tariffs on orange juice from Trump’s home state of Florida as a retaliatory measure.
On the other hand, Mexico’s President Claudia Sheinbaum said that she will assess the situation before making a decision. However, she warned that Mexico could also take retaliatory action. Sheinbaum said, “We are always ready to talk without any pressure for the respect of our people.”
Trump accuses China of supplying fentanyl to US
On Thursday, Trump said that I will impose a 25% tariff on Canada and Mexico because our deficit with these countries is very high. Earlier, Trump had said that he is considering giving exemption from tariffs on Mexican and Canadian oil imports.
According to the Energy Information Administration, last October, the US imported approximately 4.6 million barrels of oil per day from Canada and 5.63 barrels of oil from Mexico. While in that month, the average daily production of the US was approximately 13.5 million barrels per day.
Trump also alleged that China sends fentanyl, a powerful synthetic opioid to the US. Its overdose reduces the supply of oxygen to the brain. This can cause a person to go into a coma, or it can even lead to death.
US Free Trade Agreement with Canada and Mexico
The United States has a free trade agreement with Canada and Mexico. Under this, there is no tariff (duty) on any kind of import or export between these countries. During his previous term, Trump made the North America Free Trade Agreement (NAFTA) with Mexico and Canada.
If Trump imposes tariffs on these countries after coming to power, it will be a violation of the agreement.
These three countries purchased goods worth more than $1 trillion (approximately Rs 85 lakh crore) from the USA in 2023. Meanwhile, they sold goods worth more than $1.5 trillion. According to the report, Trump’s tariff war will have the most impact on the auto sector, agriculture, technology, and parts, with the prices of these items likely to increase.
67% of Americans worried about rising inflation says survey
In a survey by PWC, 67% of Americans believe that companies will pass the burden of increased tariffs onto customers. Prices of items ranging from avocados to children’s toys, chocolates, clothes, jewelry, and cars could increase by up to one and a half times.
