Trump had been threatening the tariffs to ensure greater cooperation from the countries on stopping illegal immigration and the smuggling of chemicals used for fentanyl, but he has also pledged to use tariffs to boost domestic manufacturing and raise revenues for the federal government.
The tariffs carry both political and economic risks for Trump, who is just two weeks into his second term. Many voters backed the Republican on the promise that he could tamp down inflation, but the possibility of tariffs could trigger higher prices and potentially disrupt the energy, auto, lumber and agricultural sectors.
Trump also drew fire for starting a trade fight with U. Trump had said he was weighing issuing an exemption for Canadian and Mexican oil imports. He said Friday that he was considering a lower tariff rate on oil, but it was unclear if that lower rate would be in place when he signs the order Saturday. The United States imported almost 4. The president also said more tariffs were coming, though he offered few specifics.
Kurt Tong, former U. Canadian Prime Minister Justin Trudeau said Friday that Canada is ready is a respond if Trump goes ahead with the tariffs, but he did not give details. S, putting American jobs at risk and causing prices to rise. Liu Pengyu, spokesman for the Chinese embassy in Washington, said the two countries should resolve their differences through dialogue and consultation. Moreover, the economic decline caused by the tariff could increase the incentives for Mexican immigrants to cross the border illegally into the U.
Cutler, now vice president at the Asia Society Policy Institute, said the extent of the economic damage will depend on how long the tariffs are in effect. It could affect the stock market. Then internationally it could lead to more tension with our trading partners and make it harder for us to work with them.
