US Imposes Tariffs on Canada, Mexico and China: An In-dep...

The United States is officially imposing tariffs on imports from Canada, Mexico, and China. Goods imported from Mexico and Canada will face a 25 percent tariff, while those from China will face a 10 percent tariff. A lower 10 percent tariff will also be applied to energy resources from Canada. The tariffs, which are set to take effect on February 4th, are expected to impact a wide range of goods, from electronics to clothing, pharmaceuticals, and lithium batteries. The additional fees imposed by these tariffs are usually passed on to consumers in the form of higher prices.

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Reasons for the Tariffs

The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA) due to the alleged major threat of illegal aliens and deadly drugs, including fentanyl, entering the US. The Trump administration claims that the move is aimed at holding China, Mexico, and Canada accountable for their promises to halt the flood of harmful drugs into the United States.

Impact of the Tariffs

The tariffs are expected to have a broad impact, affecting a wide range of goods, from daily necessities to high-tech products. Importing companies are the ones who pay the additional tariffs, not the exporting countries. These additional costs are typically passed on to consumers in the form of higher prices.

Trump's Trade Policy

Tariffs were a major campaign promise of President Trump, who has previously suggested additional ones, such as a tax on semiconductors from Taiwan. During his inauguration speech, Trump stated his intention to overhaul the US trade system, with the aim of using tariffs and taxes on foreign countries to enrich US citizens.