US President Donald Trump has given a big blow to three countries on Saturday (1 February). These three countries are Mexico, Canada and China. Trump has decided to impose a tariff of 25 percent on goods coming from Mexico and Canada and 10 percent on imports from China.
He has also signed an executive order regarding this decision. This decision of the US President can disrupt trade worth more than $2.1 trillion annually.
Why did Trump take this decision?
This decision has been taken to promote US domestic manufacturing and to control illegal immigration and drug trafficking. However, this may affect American consumers as expensive imports may increase the prices of goods.
Trump is trying to protect domestic industries in America from import competition. It is feared that this decision may further increase the inflation rate of America which is already facing inflation.
Inflation may increase in America
The US imports 4.6 million barrels of oil per day from Canada and 563,000 barrels of oil from Mexico. Petrol and diesel may become expensive due to the implementation of tariffs. At the same time, electronics, clothes, and other consumer goods imported from China will become expensive.
What did Trump say?
Donald Trump posted, "Today I imposed a 25% tariff on imports from Mexico and Canada (10% on Canadian energy) and an additional 10% tariff on China. This was done through IEEPA because there is a great risk of death to our citizens due to illegal aliens and deadly drugs."
He further said that we need to protect Americans, and as president it is my duty to ensure the safety of everyone. I promised in my campaign that I would stop illegal foreigners and drugs from coming into our borders and Americans voted overwhelmingly in favor of this.
Trudeau was furious with Trump's decision
Trump's decision infuriated US Acting Prime Minister Justin Trudeau. He said that our country is ready to face American tariffs. Immediately after Trump's announcement, Trudeau posted on his X handle and wrote, I will soon speak to Mexican President Claudia Sheinbaum and have already met my cabinet to discuss the issue.
He said, 'We did not want this, but Canada is ready. ' In a news conference, Trudeau said, 'The tariffs violate the free trade agreement made a few years ago. This will have serious consequences for the American people.'