TRUMP IMPOSES TARIFFS ON IMPORTS FROM CANADA, MEXICO AND CHINA: ‘NATIONAL EMERGENCY’
President Donald Trump has signed an executive order authorizing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. The tariffs, which take effect on Tuesday, are intended to address the “extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl” that the White House claims constitutes a national emergency.
Canada and Mexico have announced retaliatory tariffs on U.S. imports, with Canada placing a 25% tariff on up to $155 billion in U.S. imports, including alcohol and fruit. Mexican President Claudia Sheinbaum has also ordered retaliatory tariffs.
The tariffs could have significant economic consequences, including increased inflation and slowed economic growth. A new analysis by the Budget Lab at Yale estimates that the average U.S. household would lose the equivalent of $1,170 in income from Trump’s new tariffs.
China has also responded to Trump’s tariffs, saying they will bring a complaint to the World Trade Organization and take “corresponding countermeasures to resolutely safeguard our own rights and interests.”
Economist Steve Moore and former member of the White House Council of Economic Advisers Tomas Philipson discussed the tariffs on “The Bottom Line,” warning that the tariffs could harm the global economy and worsen inflation.
Democrats in Washington have criticized Trump’s order, warning that the tariffs will increase prices for American consumers. Senate Minority Leader Chuck Schumer wrote on Twitter, “You’re worried about grocery prices. Don’s raising prices with his tariffs.”