Trump to introduce Customs for Canada, Mexico and China Saturday, says the White House

The White House said Friday that President Donald Trump would impose a 25% duty on goods coming to the United States from Canada and Mexico and a 10% duty on them from China on Saturday, a step that could increase prices for products coming into the US from these countries.

Trump had previously said he would issue these tariffs on the first day of his presidency and then said on the day of inauguration that the tariffs would be introduced on February 1st. The White House Press Secretary Karoline Leavitt told journalists on Friday that Trump would complete on February 1st.

Leavitt said the customs were introduced in response to “the illegal fentanyl that they have picked up and allowed to distribute to our country that has killed tens of thousands of millions of Americans.”

The tariffs could increase how much US consumers and businesses pay for goods coming from Canada, Mexico and China – including electronics, toys, shoes, fresh products, wood and cars. Tariffs are paid out by companies that import goods into the United States, corresponding to a tax.

While some companies will look to buy goods elsewhere, others without alternatives will be forced to pay the fees. Businesses will have to decide whether to pass on these higher costs to consumers or absorb them, which would bend profits or demand cuts to protect their margins. The consequences could be far -reaching over the US economy, partly because US consumers and businesses imported more goods from Mexico than any other country.

When Leavitt was asked about the impact strikes on inflation, Leavitt cited relatively low inflation during Trump’s first period when he placed tariffs on billions of Chinese goods.

“President Trump will do everything he may be able to cut the inflation crisis that the former administration imposed on the American people, and he will continue to exploit customs,” Leavitt said.

Tariffs in Trump’s first period were more limited in scope than the current proposal and included a long list of exceptions and delays for certain products and industries. Economists have found that these tariffs drove prices for some imports led to a net loss of manufacture Job and reduced Business investments As a result of higher costs, companies had to pay to import materials and parts.

Mexico and Canada have threatened to reciprocate with their own tariffs on US imports, which could harm US companies selling to these countries, such as oil producers, farmers and producers.

“If the president chooses to complete any tariffs against Canada, we are ready with an answer. A targeted, powerful but reasonably immediate reaction, ”said Canadian Prime Minister Justin Trudeau on Friday. “We haven’t joined us until the tariffs are removed, and of course everything is on the table.”

During Trump’s first period, China placed retaliatory guares on US agricultural products, and almost all revenue collected by the United States from Customs in China went to Payments To American farmers to offset their losses from these Chinese tariffs.

The US automotive industry is among the most vulnerable to customs customs in Mexico and Canada. For decades, its supply chains have been heavily intertwined with America’s neighbors to the north and south. When vehicles and components cross borders several times during the production process, repeated 25% taxes could quickly increase vehicle costs.

The United States also depends on agricultural products from Mexico, one of the best suppliers of tomatoes, avocado, berries and peppers. Rising food prices have been a top concern for consumers and voters, with grocery costs rising about 25% over the past four years – a problem that Trump hammered on the campaign track.

The tariffs in Canada could also increase the prices of oil imported from Canada and Canadian timber, which could increase the cost of new homes and other construction projects.