Washington, United States — Steep US tariffs on Canadian and Mexican goods came into effect Tuesday as a deadline to avert President Donald Trump’s levies passed without the nations
Washington, United States — Steep US tariffs on Canadian and Mexican goods came into effect Tuesday as a deadline to avert President Donald Trump’s levies passed without the nations striking a deal, in a move set to snarl supply chains.
Trump had unveiled — and then paused — blanket tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to stop illegal immigration and drug trafficking.
In pushing ahead with the duties, Trump cited a lack of progress in tackling the flow of drugs like fentanyl into the United States.
US stock markets tumbled Monday after Trump told reporters there was “no room left” for the North American neighbors to avoid the levies.
The duties stand to impact over $918 billion worth of US imports from both countries.
Trump also inked an order Monday to increase a previously imposed 10 percent tariff on China to 20 percent — piling atop existing levies on various Chinese goods.
Beijing warned it would take countermeasures against the new tariffs to safeguard its own interests.
Economists caution that tariffs could raise consumer prices while weighing on growth and employment.
Asian markets fell on opening Tuesday, with Japan’s Nikkei index dropping more than two percent and Hong Kong’s Hang Seng down 1.5 percent after Trump’s latest tariff actions.
