The US President Donald Trump citing “unfair trade practices by the two neighbouring countries,” declared on Thursday that he will impose a 25% tariff on Canada and Mexico on Saturday. He added that similar actions against China are being considered by the administration.
Trump declared that he will be putting the tariff of 25 percent on Canada and, separately, 25 percent on Mexico, while addressing reporters in the White House Oval Office. He added that due to their significant deficits with those nations, they will actually need to take that action. Over time, those tariffs might increase or not.
He gave several reasons for the levies, including illegal immigration, drug smuggling, and the substantial deficit subsidies the US provides to Canada and Mexico.
“I will be putting the tariff of 25 per cent on Canada and, separately, 25 percent on Mexico. We will really have to do that because we have very big deficits with those countries. Those tariffs may or may not rise with time,” said the President.
In response to a query, Trump stated that he will make a decision on Thursday evening regarding the inclusion of oil in the list of goods that would be subject to tariffs.
Trump emphasised that the US has oil, lumber sufficient enough that they don’t need it from anyone. He added for them to be subsidising Canada to the tune of USD 175 billion a year, and subsidising Mexico to the tune of USD 250 billion-USD 300 billion a year.
Trump stated that he was considering taking action against China for supplying the US with fentanyl. As a result, China is going to end up paying a tariff also for that. Trump added. Fentanyl remains the deadliest drug threat in the country, according to the US Drug Enforcement Administration (DEA).
