New York [US], February 1: The US leader said he would increase import taxes to 25% on goods imported from Canada and Mexico, and 10% on goods from China. In addition to the three countries above, Mr. Trump also said he would increase taxes on imported oil and gas, electronic chips, steel, aluminum and copper.
The White House boss also affirmed that he would "absolutely" impose tariffs on the European Union (EU) in the future, saying that the bloc "has treated the US very badly." The Guardian reported that oil imported from Canada could be subject to a lower tariff of 10%, in the context that the neighboring country exports millions of barrels of crude to the US every day.
The US president said Canada and Mexico had failed to stop the flow of illegal immigrants into the US, and said the three countries (including China) had failed to crack down on fentanyl smuggling. Mr. Trump insisted that nothing could reverse the decision to increase tariffs, while White House press secretary Karoline Leavitt denied that the tariffs had been delayed, emphasizing that the regulation would take effect on February 1.
China has denied any involvement in fentanyl transactions. Canadian Prime Minister Justin Trudeau said on January 31 that he would "respond immediately" if Trump took action, while Mexican President Claudia Sheinbaum said her government was in close contact with US authorities.
The White House has denied that the tariff hike will spark a trade war, but observers say the move will send shockwaves through the supply chain.
AFP cited analysis from the Peterson Institute for International Economics (USA), saying that goods from Canada and Mexico exported to the US are mostly exempted from tariffs or subject to very low tariffs. A 25% tariff increase could have a significant impact on industries and consumers. Meanwhile, economists at Oxford Economics (UK) predicted that Washington's move could push Canada and Mexico into recession, while the US could also suffer a mild recession.
Source: Thanh Nien Newspaper