President Donald Trump has indicated that Americans might experience economic “pain” due to his tariffs imposed on crucial trading partners, but he contended it would be “worth the price” to safeguard US interests.
Mr. Trump has officially enacted the previously threatened 25% tariffs on neighboring Mexico and Canada, despite their existing free trade arrangement, and imposed a 10% tariff on China in addition to the taxes already in place.
He had committed to such measures since prior to his inauguration, asserting that these nations were insufficiently addressing illegal immigration and the trafficking of the hazardous opioid fentanyl into the United States.
In implementing the tariffs, set to take effect on Tuesday, Mr. Trump invoked the International Emergency Economic Powers Act.
“Will there be some pain? Yes, maybe (and maybe not!)” Mr. Trump posted in all caps this morning on his Truth Social media platform.
“But we will Make America Great Again, and it will all be worth the price that must be paid,” he added.
Canadian Prime Minister Justin Trudeau stated that Canada will impose 25% tariffs on US goods.
The president and his advisors had previously been hesitant to admit that tariffs could lead to increased consumer prices, especially after rising costs were viewed as a pivotal factor in his November election victory over Democrat Kamala Harris.
In an effort to mitigate a surge in fuel and electricity prices, Mr. Trump set the tariff on energy imports from Canada at just 10%.
In another social media post, President Trump reiterated his call for Canada to become a US state, further escalating tensions with one of his nation’s closest allies.
He claimed that the United States spends “hundreds of billions of dollars to SUBSIDIZE Canada,” adding, “Without this massive subsidy, Canada ceases to exist as a viable Country.”
“Therefore, Canada should become our Cherished 51st State,” he declared on Truth Social, arguing that this transition would bring “much lower taxes, and far better military protection for the people of Canada – AND NO TARIFFS!”.
The US Census Bureau reported a 2024 trade deficit in goods with Canada amounting to $55 billion.
In response, Canadian Prime Minister Justin Trudeau vowed to retaliate with 25% tariffs on select American goods valued at almost €103 billion, with an initial round set for Tuesday and a second round in three weeks.
Mexican President Claudia Sheinbaum has ordered retaliatory tariffs in reaction to the US decision.
Several Canadian province leaders have already announced counteractions as well, including an immediate halt on US liquor purchases.
Mexican President Claudia Sheinbaum announced that she had instructed her economy minister to “implement Plan B,” which includes yet-to-be-defined “tariff and non-tariff measures.”
On Friday, the Wall Street Journal’s editorial board criticized Mr. Trump’s tariffs in an article titled “The Dumbest Trade War in History,” stating, “American consumers will feel the bite of higher costs for some goods.”
In response, Mr. Trump remarked, “The ‘Tariff Lobby,’ led by the Globalist, and always wrong, Wall Street Journal, is working tirelessly to justify … the decades-long RIPOFF OF AMERICA, in terms of TRADE, CRIME, AND POISONOUS DRUGS.”
He has consistently condemned US trade deficits as evidence of other countries exploiting Americans.
“THOSE DAYS ARE OVER!” declared Mr. Trump.
He has also frequently threatened trade actions against the European Union.
A spokesperson for the EU stated that it would “respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs.”
China has refrained from immediate escalation but announced it will contest the tariffs at the WTO.
China has pushed back, declaring ‘fentanyl is America’s problem.’
China announced it will contest Mr. Trump’s tariffs at the World Trade Organization and will take unspecified “countermeasures” in response to the levy.
This response was less aggressive compared to the immediate escalation that characterized China’s trade conflict with Mr. Trump during his first presidential term, using more measured language in recent weeks.
China’s commerce ministry stated that Mr. Trump’s actions “seriously violate” international trade norms, urging the US to “engage in frank dialogue and strengthen cooperation.”
Filing a lawsuit with the WTO would be largely a symbolic action, similar to moves China has made against EU tariffs on Chinese-manufactured electric vehicles.
For weeks, Chinese Foreign Ministry spokesperson Mao Ning has asserted that there are no winners in a trade war.
China’s most pointed objection was concerning fentanyl, an area where the Biden administration has also been pressuring China to control shipments of the precursor chemicals required to produce the drug.
“Fentanyl is America’s problem,” stated China’s foreign ministry. “The Chinese side has conducted extensive anti-narcotics cooperation with the United States and attained remarkable results.”
