Trump announces new tariffs on goods from Mexico and Canada starting February 1

21.01.2025/19/21 XNUMX:XNUMX    460

 

This could trigger higher prices for Americans and the start of trade wars.

US President Donald Trump announced his intention to impose a 25% tariff on goods imported from Mexico and Canada starting February 1. This was one of the first trade initiatives after his return to the White House.

This is reported by CNN.

The tariff order is an “interim” step in Trump’s broader trade policy, sources said. It does not yet include the global tariffs Trump promised during the campaign.

“This is a significant change in trade policy that could raise prices for American consumers,” CNN journalists note, recalling that a free trade agreement is currently in effect between the United States, Canada, and Mexico.

In addition to tariffs on goods from Mexico and Canada, Trump previously promised to impose a 20% tariff on goods from other countries and a 60% tariff on Chinese products.

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Tariffs and their consequences

During the signing of the executive order in the Oval Office, answering questions about tariffs on China, Trump said that the significant tariffs he imposed during his first term remain in place.

Regarding the possibility of imposing global tariffs, he said: “We can do it, but we are not ready yet.”

Experts warn that the new tariffs could increase costs for American consumers, who are already suffering from the effects of prolonged inflation. According to a study by the Peterson Institute for International Economics, Trump's aggressive tariff policy will lead to higher prices for a wide range of goods - from food to toys and appliances.

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Tariffs will be paid by American companies that import goods, but these costs are typically passed on to end consumers through higher prices.

“Trump’s tariffs will force Americans to pay more for virtually everything from shoes to sports equipment,” the Peterson Institute study said.

At the same time, supporters of the new tariff policy believe that the tariffs will help protect American interests in the long term. They are confident that such measures will force foreign countries to make more favorable agreements for the United States.

The risk of a new trade war

Economists warn that the new tariffs could trigger retaliation from other countries, as happened during Trump's first term, when a range of American goods, such as cars, soybeans and whiskey, were subject to tariffs, causing significant losses for American exporters.




Critics of Trump's tariff policy also point to the risk of further unfolding inflationary crises and destabilization of stock markets, which could lead to a full-scale trade war.

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China is unlikely to be happy with Donald Trump's victory. The politician has been threatening Beijing throughout the election campaign, including promising to impose 60% import tariffs on Chinese goods. But is Trump as scary as he is portrayed?

Although Trump himself intuitively sensed the growing threat from China during his first term, the pro-Chinese business lobby had an incomparably greater influence on shaping his current position than the hawks. Will his billionaire friends influence Trump's China policy this time around?


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