'Might Hurt a Bit' – Trump’s Tariffs: 25% Duties on Mexican and Canadian Goods, 10% for China, EU Next
During a briefing for journalists, US President Donald Trump said that on 3 February he would discuss his decision to impose increased duties on goods from Mexico and Canada with the leadership of these countries.
On Saturday, he announced that he was imposing tariffs on Canadian, Mexican and Chinese goods. The tariffs on China are set to take effect at 12:01 a.m. ET on Tuesday.
Trump also said that without American subsidies, Canada would cease to exist as a viable country, so it should become ‘the 51st state's favourite’
The US President confirmed that the introduction of 25% tariffs on imports from Mexico and Canada will be suspended for 30 days due to measures taken by these countries to prevent the smuggling of opioid fentanyl into the United States.
On Monday morning, Trump spoke with Mexican President Claudia Sheinbaum. He said that they ‘agreed to immediately suspend the announced tariffs for one month’ as the two countries began talks on border security and trade.
The Mexican president also announced that she would immediately send 10,000 soldiers to her northern border to stem the flow of fentanyl shipments and illegal migrants to the United States. The vast majority of fentanyl seized at the US border originates from Mexico.
After speaking with the Mexican president, Trump spoke twice with Canadian Prime Minister Justin Trudeau. The Canadian leader warned over the weekend that his country would impose 25% tariffs in response to US goods. On Sunday, Canada also published a list of all US imports that will be subject to new tariffs, including food and clothing.
‘We don't want to be here,’ Trudeau said in an emotional televised address from Ottawa.
On Monday, Trudeau announced a pause after speaking with Trump, writing: ‘I just had a good conversation with President Trump.’
‘Canada is implementing our $1.3 billion border plan - strengthening the border with new helicopters, technology and personnel, enhancing coordination with our American partners, and increasing resources to stop the flow of fentanyl,’ the prime minister wrote.
In turn, China said it would retaliate by imposing a package of duties on a number of imported goods from the US, as Trump's 10% tariffs on China came into effect on Tuesday. Beijing's Ministry of Commerce announced on Tuesday that a 15% duty will be imposed on coal and liquefied natural gas.
A 10% duty will be imposed on crude oil, agricultural machinery and large vehicles, the ministry said, adding that the duties will be introduced on 10 February.
Trump is also expected to hold talks with Chinese President Xi Jinping in the coming days.
Earlier, Donald Trump said that the US would ‘definitely’ impose trade duties on the EU after announcing them on Canada, Mexico and China.