Trump puts U.S. tariffs on thousands of goods from Canada and Mexico, risking higher prices
President Donald Trump has moved forward with a plan to put sweeping tariffs on all goods coming into the United States from Canada and Mexico, threatening a trade war with its closest trading partners — and higher prices for Americans on thousands of consumer goods.
President Donald Trump has moved forward with a plan to put sweeping tariffs on all goods coming into the United States from Canada and Mexico, threatening a trade war with its closest trading partners — and higher prices for Americans on thousands of consumer goods.
The U.S. was scheduled to begin collecting a 25% tariff on nearly all goods from Mexico and Canada starting at 12:01 a.m. Tuesday, according to a draft public notice of the rules posted Monday. Canadian energy products would be levied at a lower rate of 10%.
Businesses ranging from automakers to alcohol producers have warned that the added costs for companies to import goods from Canada and Mexico will have wide-ranging implications across the American economy. While some companies will look to source their goods from other countries or move production to the U.S., those moves could take years.
In the meantime, companies have said they will have to pay the tariffs and then pick from two options: either pass the added costs along to consumers in the form of higher prices, or absorb the fees and either cut costs elsewhere or take lower profits.
On Monday, Trump also added an additional 10% tariff on all imports from China on top of the 10% tariff he put on Chinese goods last month, which includes products such as electronics, footwear, medicines and cosmetics. Those tariffs are in addition to tariffs already put in place during Trump's first term in office.
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