Trump imposes 25% tariffs on goods imported from Canada, Mexico, 10% on Chinese goods

WASHINGTON, Feb 1: President Donald Trump imposed 25 per cent tariffs on goods imported from Canada and Mexico and 10 per cent on goods from China on Saturday towards a 'penalty,' carrying out his threat over their failure to check illegal immigration.

However, the result is an emerging trade war with those countries which have already begun to slap retaliatory tariffs on US goods. The new US tariff rates will take effect on Tuesday. Canada said the counter tariff will also start on Tuesday.

In a tit for tat, Canadian Prime Minister Justin Trudeau announced 25 per cent retaliatory tariff. Over $600 billion US goods and services are imported by Canada while exports to the US are about $700 billion. Others like Mexico will follow suit.

Trump signed the tariff orders invoking the International Emergency Economic Powers Act.

While critics warned that Trump is going to ruin American economy, Trump told a press conference after signing the order, “Tariffs don’t cause inflation, they cause success. They cause big success. We're going to have big success."

"This man is going to crash our economy," remarked a Netizen.

"We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my campaign to stop the flood of illegal aliens and drugs from pouring across our borders, and Americans overwhelmingly voted in favor of it," Trump posted on social media.

Canadian and Mexican exports to the US will face a 25 per cent tariff, except for energy resources from Canada which will have a lower 10 per cent tariff.

Trump alleges millions illegal aliens entered the US during President Joe Biden's term.

For Trump, tariff has become a panacea for all American ills, as also a weapon to fight with. He has warned BRICS countries 100 per cent tariff hike if they replace dollar as the international currency as they are planning. Last week he imposed a tariff hike on Colombia for refusal to allow US military deportation flights, which was later withdrawn on accord.

Trudeau predicts crisis for US

Canadian Prime Minister Justin Trudeau told a press conference in Ottawa that he had no choice but to impose ountermeasures. He at the same time reminded America that Canada had stood with the US in the face international crises many times.

"We're certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs," Trudeau said. He said the US tariff will have "real consequences" for Canadians but Americans will also suffer due to their President's actions.

He said American auto assembly plants will shut and that will lead to unemployment. Tariff will also hike food and gas prices. Almost "everyday items" will be affected in the US.

A CRITIQUE: Trump says tariff can also create more jobs and reduce deficit. It is said on the plus side, tariff will raise Government revenue, achieve trade balance and force rival countries to the table for a talk on illegal immigration and drug taffic. On the contrary, American businesses and consumers will also be equally impacted. And the US Chamber of Commerce warns that tariff will not solve problems at the border. Most commonplace items imported into the US include fruits and vegetables, meat, gas, automobiles, electronics, toys, clothing, lumber and beer and spirits. Mexico is the largest supplier of fruit and vegetables while most of grain, livestock and meats, poultry and such others come from Canada.

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