US President Donald Trump on Saturday announced that he was slapping Canada and Mexico with 25 percent tariffs.
The tariffs brought to reality the economic nightmare that the two neighbouring countries have been dreading since Trump announced his intention to slap them with tariffs shortly after his election as the 47th president of the United States.
Trump said that the US would impose tariffs beginning on Tuesday of 25 per cent on Canada and Mexico, and 10 per cent on China. Canadian energy, though, will face a lower 10 per cent tariff.
“This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl,” Trump said on his Truth Social platform.
Hours later, Canada announced that they would also impose retaliatory tariffs against the United States. Canada announced that it will impose 25 per cent tariffs on $155 billion worth of American goods. Out of these, $30 billion will come into force on Tuesday and another $125 billion will go into effect in 21 days.
Among the list of items that Canada is targeting include American beer, wine, bourbon, fruits and fruit juices, vegetables, perfumes, clothing and shoes, household appliances, sporting goods and furniture, lumber (wood) and plastics.
Trump intensifies calls to make Canada 51st State of the USA
Mexico also announced that it will be exploring its retaliatory options with an equivalent of 25 per cent tariffs on American goods in the coming days.
The tariffs on Canada came riding on the back of claims by Trump that Canada has been taking an economic advantage of her neighbour, resulting in a huge trading deficit. Trump has further accused Canada and Mexico of fostering illegal immigration into the United States, and also suggested that Canada should be become the 51st State of the United States.
Canada has, however, denied these claims, including the allegation, and has vowed to implement $900 million of new security measures along its US border. The country has further stated that less than 1 per cent of fentanyl going into the United States comes from Canada, contrary to what Trump has claimed.
