New tariffs of 25 per cent on imports from Mexico and Canada and a doubling of tariffs on Chinese goods to 20 per cent went into effect on Tuesday, opening a new phase of trade conflicts with the US’ three biggest trading partners.
President Trump said in a speech at the White House on Monday that high tariffs on Canada and Mexico will take effect on Tuesday. He stressed there is no chance of a last-minute deal to prevent the tariffs from going into effect.
“Tariffs, you know, they’re all set,” Trump said.
The American leader proposed imposing a 25 per cent tariff on all Mexican and Canadian exports crossing those borders and an additional 10 per cent on Chinese goods starting just after midnight Tuesday, saying those countries had not done enough to stem the flow of drugs and migrants into the United States.
China reacted immediately, announcing additional tariffs of 10-15% on certain US imports from March 10 and a series of new export restrictions on US organisations.
The move would increase the duties the United States levies on foreign goods to levels not seen since at least the 1940s, and would likely disrupt regional supply chains and raise the cost of goods ranging from cars to breast pumps to vegetables.
The tariffs are also expected to further worsen US relations with two of its closest neighbours, whose economies are closely linked across North America. Leaders in Canada and Mexico are struggling to persuade Trump to change his mind by devoting more resources to securing the border.
Canada, Mexico and China account for more than 40 per cent of US imports, and economists say stiff tariffs could drive the Canadian and Mexican economies into recession.
