U.S. Tariffs on Canada and Mexico Loom as Affordability Czar is Announced

Secretary Scott Bessent anticipates tariffs on Canada and Mexico amidst negotiations led by President Trump. He proposed appointing an affordability czar to address inflationary challenges for American consumers. Tariffs may increase costs on various goods, straining American households, despite claims of manageable consequences from past tariffs.

Commerce Secretary Howard Lutnick announced on Sunday his anticipation of impending tariffs on Canada and Mexico, which President Donald Trump is expected to finalize on Tuesday. He indicated that the specifics of the tariffs would be subject to negotiation by the president and his team, emphasizing the fluidity of the situation.

In February, President Trump proposed a 25% tariff on all imports from Mexico and the majority of those from Canada, particularly a 10% duty on energy products. Previously delayed, these tariffs could be enacted concurrently with a new 10% tariff on Chinese imports, as Lutnick mentioned additional tariffs on China also remain a possibility.

Economists have expressed concerns that these tariffs on the United States’ leading trading partners may lead to increased costs for American consumers and businesses. This situation could exacerbate the financial strains on households and industries, especially as inflationary pressures persist despite recent easing trends.

On CBS News, Treasury Secretary Scott Bessent stated that Mexico has indicated a willingness to match U.S. tariffs on China. Should Canada follow suit, Bessent remarked that such actions would represent a constructive beginning. He noted potential increases in tariffs could take effect by Tuesday, suggesting a reactive approach to international trade dynamics.

Bessent also announced plans to appoint an “affordability czar” to focus on mitigating inflationary impacts on working-class Americans. He articulated that this official would identify key areas where the administration could provide relief. There is also the consideration of creating an “affordability council” to support this goal.

The future of U.S. tariffs on Canada and Mexico hinges on President Trump’s forthcoming decisions, as he navigates complex trade relationships. With proposed tariffs potentially affecting consumer prices, the administration emphasizes its commitment to mitigating inflation through strategic appointments and regulatory adjustments. Both international and domestic priorities will shape economic conditions in the upcoming days.

Original Source: www.cnn.com