Trump Announces Return of 25% Tariffs on Canada and Mexico Due to Drug Trafficking Concerns

President Trump plans to impose a 25% tariff on Canada and Mexico, citing drug trafficking. The tariffs will take effect on March 4 after being previously delayed. He also announced a 10% tariff on China and a 25% tariff on various imports starting April 2. Economists warn that tariffs may cause increased consumer prices and disrupt supply chains.

On Thursday, President Donald Trump announced intentions to reinstate a 25% tariff on imports from Canada and Mexico, previously delayed earlier this month. In a post on Truth Social, he attributed the decision to rising drug trafficking across the borders, stating that these flows were at “very high and unacceptable levels”. The tariffs are set to take effect on March 4.

President Trump remarked, “We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS… will… go into effect, as scheduled.” Previously, tariffs were postponed after leaders from Canada and Mexico committed to strengthening border security and mitigating drug trafficking.

In addition to the tariffs on Canada and Mexico, President Trump indicated that a further 10% tariff on Chinese imports would also be enacted. Moreover, he revealed that the previously proposed 25% tariff on automobiles, semiconductors, and pharmaceuticals would begin on April 2.

Tariffs, which are fees imposed on imports, typically result in increased costs for consumers, as businesses tend to pass the additional charges onto customers. Research from universities including Georgia State and Arizona State indicates that these tariffs could disrupt supply chains alongside inflating consumer prices.

With China, Mexico, and Canada being the United States’ largest trading partners, the implementation of these tariffs could have significant economic repercussions. Mexico annually exports goods worth over $421 billion to the U.S., while Canada exports around $438 billion. This trade relationship includes crucial imports of cars and car parts among other products.

In summary, President Trump’s decision to impose a 25% tariff on Canadian and Mexican imports stems from concerns over drug trafficking. The planned tariffs are scheduled to take effect on March 4, with potential economic impacts on consumer prices and supply chains. With significant trade relationships at stake, the tariffication could have widespread implications for the economies of both neighboring countries and the U.S. itself.

Original Source: www.scrippsnews.com