US tariffs of 25% on goods from Mexico and Canada came into effect from Tuesday 06:01 CET, pushing North America into a regional trade war and sending financial markets reeling. US President Donald Trump also raised tariffs on Chinese goods to 20% over fentanyl.
Trump's remarks on Monday triggered a global sell-off in stocks and sent bond yields lower, while the Mexican peso and Canadian dollar fell in response.
“They're going to have to impose a tariff. So frankly, they're going to have to build their auto plants and other facilities in the United States, and then they won't have tariffs,” Trump said at the White House.
He said there was “no room left” for a deal to prevent tariffs by restricting fentanyl supplies to the United States.
Trump also confirmed plans to raise tariffs on all Chinese imports to 20%, up from 10%, as punishment for Beijing’s failure to stop fentanyl from flowing into the U.S. In an executive order, the president said China “has failed to take adequate steps to address the drug trafficking crisis.”
CEOs and economists warn that Trump's tariffs on Canada and Mexico, affecting more than $900 billion in annual U.S. imports, will significantly undermine North America's tightly integrated economy.
The tariffs took effect at 12:01 a.m. ET (6:01 a.m. CET) Tuesday, according to Federal Register notices from the Trump administration. At that time, U.S. Customs and Border Protection began imposing a 25% tariff on Canadian and Mexican goods, as well as a 10% duty on Canadian energy products.
At the same time, additional duties on Chinese imports came into force.
Source: euractiv.com
