US Expected to Impose Tariffs on Canada and Mexico Amid Ongoing Inflation

Commerce Secretary Howard Lutnick announced upcoming tariffs on Canada and Mexico, pending President Trump’s decisions on rates. These tariffs may drive up costs for essential consumer goods, placing further financial strain on American families. Treasury Secretary Scott Bessent suggested a collaborative tariff approach with Mexico while voicing plans to reduce inflationary effects through an affordability czar.

On Sunday, United States Commerce Secretary Howard Lutnick announced that the nation is expected to implement tariffs on Canada and Mexico starting Tuesday. However, he emphasized that the situation remains dynamic, with decisions regarding the specific tariff rates to be left in the hands of President Donald Trump and his administration. “There are going to be tariffs on Tuesday on Mexico and Canada,” Lutnick stated during an appearance on Fox News.

In February, President Trump proposed a 25% tariff on imports from Mexico, and a similar rate on most Canadian imports, with the exception of energy products, which were slated for a 10% duty. Additionally, a new 10% tariff was proposed for imports from China. While Canada and Mexico’s tariffs were postponed for one month, Trump has already enacted the 10% tariff on Chinese goods. Lutnick also noted that an additional 10% tariff on Chinese imports remains a possibility for forthcoming discussions.

Economists suggest that imposing tariffs on these key trading partners may lead to increased prices for various consumer goods, such as electronics, footwear, groceries, and vehicles. This situation could negatively impact American consumers and businesses, who are already navigating complications from persistent inflation despite some relief in inflation rates currently observed.

During the same interview, Treasury Secretary Scott Bessent conveyed that Mexico has proposed matching the United States’ tariffs on Chinese products. If Canada were to respond similarly, he asserted that it would represent a positive development. Bessent remarked that these tariffs could be implemented “by Tuesday, or maybe the tariff wall goes up, and then we see what happens from there.”

Additionally, Bessent mentioned that the Treasury Department plans to establish an “affordability czar” to tackle ongoing inflationary issues, focusing specifically on areas where the administration can make a substantial impact on working-class Americans. He indicated the potential formation of an “affordability council” alongside this initiative. Although he reassured the public that increased prices are not a concern, data reveals that US companies incurred an additional $46 billion in tariffs during Trump’s first term, as reported by the free-trade coalition Tariffs Hurt the Heartland.

“It’s a holistic approach. There will be tariffs, there will be cuts in regulation, there will be cheaper energy,” Bessent remarked. He expressed his expectation for inflation rates to decline throughout the year.

In summary, the United States is poised to implement tariffs on imports from Canada and Mexico, with the specifics to be determined by President Trump. Economists warn of potential price increases for consumers. Treasury Secretary Bessent has outlined plans for an affordability czar while addressing ongoing inflation. The effectiveness of these tariffs on trade relations and the economy remains to be seen as the situation continues to evolve.

Original Source: whdh.com