US President Donald Trump has officially signed an executive order to impose tariffs on goods from Canada, Mexico and China at rates ranging from 10-25%.
Reuters reported that President Trump signed an executive order on February 1 imposing a 25% tariff on goods from Canada and Mexico, and a 10% tariff on goods from China. Energy products from Canada are subject to a 10% tariff while similar products from Mexico are subject to a 25% tariff.
President Donald Trump signs an executive order at the White House on January 30.
The exemption for shipments under $800 to Canada is also being eliminated. The new tax will be collected from February 4, but goods loaded onto ships to the U.S. before February 1 will not be subject to the tax.
The new tariffs would be lifted if the national emergency in the US over fentanyl and illegal immigration ends.
Mr. Trump accused China of smuggling fentanyl and related drugs into the United States through Canada and Mexico. He also criticized illegal immigration at the US border with two neighboring countries, mainly Mexico.
Mr. Trump’s move is likely to be met with retaliation from the above countries and start a trade war with the risk of causing broader economic disruption for the countries involved. Moreover, experts predict that the above tariffs could significantly increase the prices of many common goods and affect American consumers.
On January 31, Mr. Trump himself admitted that the tax rate could cause temporary disruption but "will make America very rich and very strong" and hoped that people would understand, according to CNN.
Canada, Mexico and China are the three largest trading partners of the United States. Last year, Mexico exported $467 billion worth of goods to the United States, followed by China at $401 billion and Canada at $377 billion. Together, they accounted for 42% of global U.S. imports.
The United States also exports a large amount of goods to these countries. Last year, the United States exported the most to Canada, at $322 billion, followed by Mexico at $309 billion and China at $131 billion. Together, they accounted for more than 40% of America’s global exports.
All three taxed countries have not yet responded to President Trump's move.
Source: https://thanhnien.vn/ong-trump-chinh-thuc-danh-thue-len-hang-hoa-canada-mexico-va-trung-quoc-185250202064220643.htm
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