US President Donald Trump declared plans to impose 25 percent tariffs on goods from Mexico and Canada and 10 percent on Chinese imports, asserting that no actions by the countries could stop them.
Trump did mention a possible exception for Canadian oil, noting that the tariff rate for oil would be 10 percent, compared to the 25 percent rate for other goods from Canada. However, he also suggested that broader tariffs on oil and natural gas would be introduced in mid-February, which caused oil prices to rise.
While speaking to reporters in the Oval Office as he was signing executive orders, he was asked if there was any opportunity at this stage for the three top U.S. trading partners to win a delay, on this, Trump said: “No, no. Not right now, no.”
Moreover, he dismissed the idea that his threat of tariffs was a bargaining tactic, he said, “No, it’s not … we have big (trade) deficits with, as you know, with all three of them.”
“It’s something we’re doing, and we’ll possibly very substantially increase it, or not, we’ll see how it is,” Trump said. “But it’s a lot of money coming to the United States,” as told reporters as quoted by Reuters.
More tariffs on the way?
President Trump added that more tariffs are on the way, including on European goods, steel, aluminum, copper, drugs, and semiconductors.
“We’re going to be putting tariffs on steel and aluminum, and ultimately copper. Copper will take a little longer,” he told reporters as quoted by Reuters.
Trump’s tariffs expected to prompt retaliatory actions
According to Reuters report, Trump’s decision to impose new tariffs is expected to prompt retaliatory actions, potentially disrupting over $2.1 trillion in annual U.S. trade with Canada, Mexico and China.
Canadian Prime Minister Justin Trudeau on Friday said that the country would immediately respond with forceful countermeasures, adding Canadians could be “facing difficult times in the coming days and weeks.”
Mexican President Claudia Sheinbaum said she would “wait with a cool head” for Trump’s tariff decision and was prepared to continue a border dialogue. Sheinbaum previously said Mexico also would retaliate, arguing Trump’s tariffs would cost 400,000 U.S. jobs and drive up prices for U.S. consumers.
A Chinese embassy spokesperson in Washington criticised the new tariffs, “There is no winner in a trade war or tariff war, which serves the interests of neither side nor the world.”
(With inputs from Reuters)
