Trump to impose tariffs on Canada, Mexico and China on Saturday, White House says
The White House said Friday that President Donald Trump would impose a 25% tariff on goods coming to the U.S. from Canada and Mexico and a 10% tariff on those from China on Saturday, a move that could drive up prices for products coming into the U.S. from those countries.
The White House said Friday that President Donald Trump would impose a 25% tariff on goods coming to the U.S. from Canada and Mexico and a 10% tariff on those from China on Saturday, a move that could drive up prices for products coming into the U.S. from those countries.
Trump had said he would issue those tariffs on the first day of his presidency, then said on Inauguration Day that the tariffs would be put in place on Feb. 1. White House press secretary Karoline Leavitt told reporters on Friday that Trump would carry through on that Feb. 1 deadline.
Trump said Friday that there was nothing that the three countries could do to avoid the tariffs, which he said were in response to the import of fentanyl into the U.S. and because the U.S. has a trade deficit with the three countries. The U.S. is considered to have a trade deficit with those countries because it buys more goods and services from them than it sells to them.
The tariffs could increase how much U.S. consumers and businesses pay for goods coming from Canada, Mexico and China — including electronics, toys, shoes, fresh produce, lumber and cars. Tariffs are paid by companies importing goods into the U.S., similar to a tax.
While some businesses will look to source goods elsewhere, others with no alternatives will be forced to pay the fees. Companies will have to decide whether to pass these higher costs to consumers or absorb them, which would dent profits or require cuts to protect their margins. The implications could be wide-reaching across the U.S. economy, in part because American consumers and businesses imported more goods from Mexico than any other country.
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