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The United States has placed new 25% tariffs on imports from Mexico and Canada, despite both countries’ claims that they have worked to reduce illegal migration and drug trafficking as requested by President Donald Trump.
Trump had announced these tariffs a month ago but delayed them after Canada and Mexico promised to take action. On Monday, he said there was no more room for negotiations, and the tariffs would now take effect.
After the announcement, U.S. stock markets dropped sharply. In a recent interview with CBS News, investment guru Warren Buffett, the chairman and CEO of Berkshire Hathaway, characterized tariffs as “an act of war, to some degree.” He explained that tariffs function as a tax on goods, ultimately leading to higher prices for consumers.
Canadian Prime Minister Justin Trudeau called the tariffs unfair and said Canada would retaliate with 25% tariffs on $107 billion worth of U.S. goods. He stated that Canada has worked closely with the U.S. to reduce fentanyl smuggling, leading to a 97% drop in seizures at the border. Trudeau warned that the tariffs would disrupt trade and increase prices for Americans on goods like groceries, gas, and cars.
Trump has also said that he wants Canada to become the 51st state of the USA–although it is hard to know if this is a serious proposal, this has caused considerable anger in Canada, with many Canadian boycotting US products.
Mexican President Claudia Sheinbaum, whose country exports 80% of its goods to the U.S., hinted at retaliatory measures. She noted that Trump’s decision would determine Mexico’s response. After Trump first announced the tariffs, she deployed 10,000 troops to Mexico’s northern border to combat drug smuggling.
U.S. officials reported a record low number of illegal border crossings in February, but the new tariffs could harm the economies of all three countries.
The U.S. also increased tariffs on Chinese goods from 10% to 20%, blaming China for fentanyl smuggling. China strongly opposed this move, saying it violates trade agreements and will take countermeasures. In response, China announced new tariffs on U.S. agricultural products, including chicken, wheat, corn, soybeans, and beef.
Trump has also threatened to impose a 25% tariff on European goods, leading the European Union to warn of immediate retaliation. Additional tariffs on cars, lumber, and medicines may also be introduced.
Many economists warn that tariffs could raise prices and fuel inflation. Trump acknowledges short-term difficulties but believes they will encourage foreign companies to manufacture in the U.S. instead of exporting goods.
Source: VOA.
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