President Donald Trump announced his intention to impose tariffs on Canada and Mexico, in addition to doubling the existing 10% universal tariff on imports from China. The tariffs are set to go into effect starting next Tuesday.
In a post on Truth Social, Trump cited the smuggling of illicit drugs, particularly fentanyl, into the United States at what he described as 'unacceptable levels.' He believes that imposing import taxes will compel other countries to take action against drug trafficking.
Trump emphasized the need to address the issue, stating, 'We cannot allow this scourge to continue to harm the USA.' He indicated that until the smuggling of illicit drugs is significantly reduced or stopped, the proposed tariffs will be implemented as scheduled on March 4th. China will also face an additional 10% tariff on that date.
The announcement of escalating tariffs has already had repercussions on the global economy. Consumers are expressing concerns about potential inflation and the impact on the auto sector, particularly if Canada and Mexico, America's two largest trading partners, are subjected to tariffs.
The possibility of higher prices and slower economic growth has raised fears of political backlash against Trump. The uncertainty surrounding the tariff measures has led to turmoil in financial markets and has sparked debates about the potential consequences for various industries.
