Trump imposes tariffs on Canada, Mexico and China. Costs could increase | AP News
Explain how this is NOT going to cause prices to increase ... the opposite of what Trump promised.
S E E D E D C O N T E N T
WASHINGTON (AP) — President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China, drawing swift retaliation and an undeniable sense of betrayal from the country's North American neighbors as a trade war erupted among the longtime allies.
The Republican president posted on social media that the tariffs were necessary "to protect Americans," pressing the three nations to do more to curb the manufacture and export of illicit fentanyl and for Canada and Mexico to reduce illegal immigration into the U.S.
The tariffs, if sustained, could cause inflation to significantly worsen, threatening the trust that many voters placed in Trump to lower the prices of groceries, gasoline, housing, autos and other goods as he promised. They also risked throwing the global economy and Trump's political mandate into turmoil just two weeks into his second term.
Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate. Trump's order includes a mechanism to escalate the rates charged by the U.S. against retaliation by the other countries, raising the specter of an even more severe economic disruption.
"The actions taken today by the White House split us apart instead of bringing us together," Canadian Prime Minister Justin Trudeau said in a somber tone as he announced that his country would put matching 25% tariffs on up to $155 billion in U.S. imports, including alcohol and fruit.
He channeled the betrayal that many Canadians are feeling, reminding Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina.
"We were always there standing with you, grieving with you, the American people," he said.
Mexico's president also ordered retaliatory tariffs. China did not immediately respond to Trump's action.
"We categorically reject the White House's slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory," Mexican President Claudia Sheinbaum wrote in a post on X while saying she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico's interests.
"If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don't do and the laundering of money that this illegal activity generates that has done so much harm to its population."
The premier of the Canadian province of British Columbia, David Eby, specifically called on residents to stop buying liquor from U.S. "red" states and said it was removing American alcohol brands from government store shelves as a response to the tariffs.
The tariffs will go into effect on Tuesday, setting up a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the U.S. economy, saying the average household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen — and the situation could be even worse with retaliation from other countries.
Democrats were quick to warn that any inflation going forward was the result of Trump's actions.
"You're worried about grocery prices. Don's raising prices with his tariffs," Senate Democratic leader Chuck Schumer of New York wrote in a series of posts on X. "You're worried about tomato prices. Wait till Trump's Mexico tariffs raise your tomato prices," read another. "You're worried about car prices. Wait till Trump's Canada tariffs raise your car prices," read another.
A senior U.S. administration official, speaking on condition of anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize disruptive increases on the price of gasoline or utilities. That's a sign White House officials understand the gamble they're taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped return Trump to the White House.
The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.
The order would also allow for tariffs on Canadian imports of less than $800. Imports below that sum are currently able to cross into the United States without customs and duties.
"It doesn't make much economic sense,'' said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former U.S. trade official. "Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive ... Now, what's he talking about? He's talking about tariffs on raw materials. I don't get the economics of it.''
With the tariffs, Trump is honoring promises that are at the core of his economic and national security philosophy. But the announcement showed his seriousness around the issue as some Trump allies had played down the threat of higher import taxes as mere negotiating tactics.
The president is preparing more import taxes in a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil and natural gas, as well as copper, pharmaceutical drugs and imports from the European Union — moves that could essentially pit the U.S. against much of the global economy.
Trudeau warned of economic pain as the tariffs take effect and encouraged Canadians to "choose Canadian products and services rather than American ones." But he also voiced optimism in the enduring relationship between the two countries.
"It is going to have real consequences for people, for workers on both sides of our border. We don't want to be here. We didn't ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States," Trudeau said.
___
Boak reported from Palm Beach, Florida, Sherman reported from Mexico City and Gillies reported from Toronto. Associated Press writer Paul Wiseman in Washington contributed to this report.
JOSH BOAK Boak covers the White House and economic policy for The Associated Press. He joined the AP in 2013. ZEKE MILLER Zeke is AP's chief White House correspondent
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Trump is an irresponsible asshole.
Does he truly not comprehend that this will raise consumer prices and could easily spoil our economy and trigger a Bear market ... ?
Or is he such an asshole and so emboldened with his new toy (the presidency) that he does not care how much havoc he causes?
Far right wing fascism will never be good for America.
Trump is a far right wing fascist.
Trump is also a low IQ fool. So are his psychophants.
His tools have sub 100 IQs.
... fish in a barrel.
Now I want to see Ford win his Ontario election and with a mandate cut off the power Ontario sends to the northern US States as he had threatened. Trump has opened a can of worms and shot his and all Americans in the foot - what a fool.
I honestly don't think he cares, Buzz. He and the people he cares for, if any such exist, will be fine, insulated from the effects of his trade wars.
I kinda hope he does too.
Wyoming has 5 power generation plants in 4 different locations that DID have a decommissioning date set, those dates are now gone , and those plants are scheduled for updates to keep going well past the decommissioning dates .
Of course they are mostly coal fed , with at least one fired by NG , both of which are locally source able .
Maybe that extra power saved by that embargo can be fed to the canadian citizens to lower their power bills .
looks like the canadians would have a win , and the continued operation of those 5 plants will keep people working , not to mention keep coal miners and NG fields employees working as well.
seems like a win across the board for everyone .
If it's a win-win situation, I'm all for it. But what Trump is doing is mostly lose-lose.
when i said it was a win across the board , i was of course being optimistic .
but we both know thats not going to be what happens .
and we both know , if ford flips the off switch and embargos as political leverage , there is on switches on this side of the border that can flipped just as quickly to cover that action .
In that case , i think it is obvious who will lose , and it wont be people on the US side of the border .
I beg to differ, Mark. This is developing into a trade war and everyone is going to be a loser, and you know damn well who started it and for no valid reason.
Yes, tell us how it started.
Trump arrogantly and stupidly made an outrageous PUBLIC threat to Mexico, Canada, and China to get them to change their policies regarding the passage of drugs like Fentanyl. He leaped to the last resort immediately and publicly causing these nation to respond in a fashion that does not make them look weak.
Normal, rational PotUS would engage these trade partners PRIVATELY and would not impose outrageous tariffs unless negotiations broke down and the partners were being unreasonable.
According to the CEO of Canada's second biggest company, Trudeau had time to act:
The CEO of Canada’s second-largest publicly traded company says Canadians want their government to do all the things that President Trump is demanding — and slammed outgoing Prime Minister Justin Trudeau for not preventing the trade war .
Trump, 78, on Saturday, signed an executive order to slap 25% across-the-board tariffs on America’s northern neighbor, citing its failure to meet his demands on helping crack the fentanyl and illegal immigration trade.
“Canada thrives when it works with America together. Win by helping America win. Trump believes that Canada has not held its side of the bargain,” Tobi Lutke, who co-founded Shopify, wrote on X.
“These are things that every Canadian wants its government to do, too. These are not crazy demands, even if they came from an unpopular source. These tariffs are going to be devastating to so many people’s lives and small businesses.”
Lutke’s withering critique came in response to a clip of Trudeau announcing 25% retaliatory tariffs on $107 billion worth of US goods and pushing for policies targeting red states.
Shopify, the e-commerce giant that Lutke co-founded in 2006 is worth about $150 billion. It’s Canada’s biggest tech company and biggest ever startup — and second only to the Royal Bank of Canada in size.
Shopify CEO Tobi Lutke defends Trump tariff demands, slams Trudeau
As bad as they acted in the past 4 years, they had their chance. We are beyond negotiations.
Dead wrong; irrational. One is never beyond negotiations if negotiations have not even started.
In 2022, around 73,838 people in the United States died from a drug overdose that involved fentanyl. This was the highest number of fentanyl overdose deaths ever recorded in the United States, and a significant increase from the number of deaths reported in 2019. Fentanyl overdoses are now the driving force behind the opioid epidemic, accounting for the majority of overdose deaths in the United States.
I wonder how much of that fentanyl was produced in the US? I also wonder, with the Cartels having established such a foothold in the US, how much is produced here now....
Is that a Jimmy Carter quote? Or just Pollyanna?
Trudeau went to Mar-a-Lago, remember?
I wonder if the Cartels will start targeting US law enforcement the way they have in South & Central America?
Have fun wondering.
The way the USA (and other major nations) operate is with diplomacy. Are you entirely unaware of how international relationships work?
Military force, tariffs, and other forceful measures are typically the last resort.
After Trump had made his public threat. Hello?
And after that visit, Trump went to a new level of asshole with this 51st state crap. Trump is an irresponsible troll.
39,999,999 Canadians disagree with him.
That includes me.
maybe, but i know i wont be affected, like some it appears
LOL According to one Trump-poodle Canadian CEO.
This is how Canadians feel about it. I would guess that the 18% are those who are not affected or don't understand the ramifications, but 82% is a pretty good majority:
Is that a surprise Buzz?
If we made a deal that I gave you $50 a week and you gave me $5 a week, wouldn't you be in favor of it?
The Wall St. Journal has a new editorial saying that TRUMP BLINKED in the tariff threat.. I will post it for you later.
You've posed a false equivalence between an actual normal probably universal international situation and a totally unlikely exaggerated personal one, so I have no intention of being drawn into your web.
Canada benefited from US trade. They avoided tariffs simply by committing to stop Fentanyl from coming into the US.
What's the big deal?
I already posted the FACTS.
You already ignored them.
Trade benefits and deficits are the norm throughout the world.
"Then what was the necessity of bullying by using tariffs as a weapon?"
Using tariffs as a weapon and not started it by negotiation made America the neighbourhood bully and the disdain of the rest of the world, although others are too diplomatic to make public what they think of that.
Got them moving, didn't it? Otherwise, it may have taken months to even get a start. Good move on Trump's part
The US gets about 60% of its crude from Canada and this is at a discount; about 75% of the average OPEC price. You do not think we benefit from the relationship?
Canada benefits by having the USA as a major consumer who conveniently transports their crude and the USA enjoys a convenient source and a great discount.
If you want your dog to stop sniffing and just move along on your walk, do you kick him so that he is airborne and lands with a bruised behind?
Do you truly not recognize the absurd level of overkill by Trump?
Do you not recognize the damage that this overkill has done with worldwide relationships?
Trump is an irresponsible asshole and he is the face and voice of our nation because of voters like you.
You see, Buzz, sometimes governments don't listen. Being nice doesn't always do it. Trump got it done.
Of course I do. It is the plan. These fuckers need to shit or get off the pot. No more of this kicking the can down the road while we him haw. If you know what you are going to do eventually, according to you and some others here, just fucking do it and leave all the foo foo shit for those taken by surprise. It isn't like they don't know Trump and his MO FFS.
No. And quite frankly, I seriously doubt you do either. Please expound.
It may very well be what they said was just lip service that they never intended to do. Trump is forcing them to actually take action and has let them know he will be watching them to make sure they do.
Will some countries be unhappy in the short term? Of course. If you are used to getting a 100 dollar allowance and dad comes along and cuts it down anyone would not be happy. Some countries will have to put their big boy pants on and get over it. If everyone got a divorce after having a disagreement everyone in the world would be single.
So you say you recognize the absurd level of overkill but then defend it. Just amazing.
Already did. But I will do it again just for you. Diplomatic / trade relationships are based on a level of trust and predictability. It is impossible to cover all contingencies plus nations do not have a means to hold others accountable. That is, there is no worldwide authority (like a justice system) that would deal with violations of treaties, etc. It is up to the nations themselves for the most part.
Thus, we return to trust and predictability. It is risky to limit yourself to a single trade partner or a predominant partner. If that partner decides to renege then that can be devastating for one's economy. Thus strong commitments to a partner are predicated on a level of trust and predictability.
Canada, for example, is highly dependent on the USA for purchase and distribution of its crude oil. Given our long-standing, cordial relationship as allies and partners, Canada was comfortable enough with the USA to not (over the years) seek ways to become more independent. They likely did not think the USA would ever elect a tyrant who would publicly, gratuitously threaten them with an outrageous across-the-board tariff without even having a private meeting to discuss the situation. The likely did not have many plans for how to deal with a rogue USA that used its might to squeeze them. For our lifetimes, the relationship has been generally stable and predictable with relatively few disputes; we have been allies.
You can bet that after this, Canada will be effecting plans to become less dependent on the USA. Likely by building alternative pipelines that make exports to other nations more practical.
And across the planet, every nation that trades with the USA is watching what the USA is doing to its closest trade partners. Especially since two of them, Mexico and Canada, are allies and geographical next-door neighbors. They clearly recognize (since this is blatantly obvious) that the USA cannot be trusted to elect responsible, rational leaders and they will factor that into their subsequent dealings with the USA.
The damage, Jim, is with trust. And that damage has already been done. Trump can worsen it, but there is no way we will regain the level of trust we enjoyed while Trump is in office and for years afterwards.
The key criticism is that Trump engaged in overkill. He could have nudged them (as Jim suggested) with private negotiations. He did not do that. Instead he engaged in arrogant theatrics. He publicly threatened them with outrageous tariffs unless they meet his demands.
You of course try to defend that irrational, irresponsible and damaging act rather than recognize that a normal PotUS would have avoided all this chaos and damage to relationships and dealt with Canada privately and with civility.
MAGA likes bullies
You said worldwide. I said please expound. You gave one example, and not a very good one. And you can't POSSIBLY know what the rest of the world is thinking. That is the outcome you hope for so your nanny nanny boo boo "he's going to" will someday, be relevant.
Just think how that sits with them. On one hand, they can be pissed and refuse ANY negotiations or, deal with it. Personally, my feeling is that they will remember how unpredictable Trump is and get on board. After all, if we would do this to our closest, imagine the possibilities for those who resist.
How so? We deal with many countries throughout the world and there are some, foolish enough, to blow it off. Responsible leaders will take heed and act accordingly. We also hold our noses while trading with some countries due to their choice of leadership. This isn't something new by any means.
Yes. Did you not read what I wrote? I used Canada as my example but was speaking of international relationships. Surely you read this in my post:
Which is the point I made. Hello?
Maybe, maybe not. They could have ignored him or negotiate for the next year or so, promising alot and not delivering
Is that a surprise? It sure looks like he cut through alot of the bureaucratic bullshit.
Yea, yea, yea. You of course try to bash and complain about everything Trump does or says ignoring results. Some Presidents might very well have taken a different route, there is nothing saying they would have gotten the same results as you (collectively) seem to believe. If they follow through (and they just might since tariffs have only been put on hold) it is a win for the United States. Of course those suffering from Trump hysteria will probably never see that.
It didn't need a threat to get Canada moving. BEFORE Trump's bullying threat Canada had already started dealing with immigration and migrant problems to the extent that universities and colleges were having financial difficulties, even put Algonquin College out of business. Besides, private negotiations would have led to good results, whereas the bullying tariff threats gave Trudeau and Ford no choice but to maintain their authority and announce retaliation.
And rescind it later.
And not even trying is the act of a bullying tyrant who is going to cause the rest of the world to seek out alternative trading partners which is NOT going to benefit Americans.
au contraire. Personally, I have seen "other partners" try and fail. Former employer's largest customer went to China for investment castings cuz they were $1 cheaper per part. Well after shipping delays and ongoing quality issues, guess who came crawling back? A vendor, that far away, left the customer hardly any control.
What I think about that I posted on other seeds but not here yet. The response to what Trump did was responded to by one of Canada's officials that Canada can seek other trade partners, and I suggested because I'm pretty sure of it, China would love to get its hands on Canada's wood, and Europe can sure use Canada's oil (Europe has lots of refineries) and teh discount the USA gets can cover the shipping. As well Canada can buy its fruits and veggies in winter from Mexico instead of California and Florida, and a lot of the products it buys from the USA from elsewhere - maybe cheaper from China. As well, a "BUY CANADIAN" drive has now started. I just watched a news video that showed American liquor being pulled off Canadian shelves and boxed. Seagram's Crown Royal is just as good as anything America produces.
Going to be implemented.........key words. What actions toward that end have been implemented so far? It's great to have "plans" on paper but one must get off one's ass and do something. Words are a dime a dozen. That is the perceived stance of the administration.
Do you mean "delay" rather than "rescind" since Trump delayed for a month?
To quote Trump:
"I will say that we just ended a nightmare known as NAFTA. (Applause.) They took our — they took our jobs for a long time. They took it for a long time. And we now have a brand-new U.S.-Mexico-Canada Agreement. It’s a whole different ballgame, and it’s going to be great for this plant. It’s going to be incredible for Michigan and for every place else in our country.
The USMCA is the fairest, most balanced, and beneficial trade agreement we have ever signed into law. It’s the best agreement we’ve ever made, and we have others coming. And, by the way, the China deal, two weeks ago, was just signed. And that’s going to bring $250 billion into our country. (Applause.) One after another."
Let us not forget his fans on this site who also ballyhooed the treaty with all the 'approved' "best ever" balderdash.
Seeing the treaty was up for review in 2026, one wonders what the rush was all about.
Trump, perhaps taking note of the disaster he is causing the American people has just said:
LINK -> Trump defends Canada, China, Mexico tariffs, says there could be pain
How's your memory, folks? Can anyone recall how Trump played down the Covid virus?
Trudeau has just declared a list of $155b worth of goods to bear a 25% tariff, starting with $30b worth now. I'll bet Mexico will be happy to sell its fruit to Canada, and I'm damned sure that China would LOVE to replace the items on that list at a lesser cost than Canada is already paying, So let's see how this goes, eh?
Oh, I'm going to post an article about Trudeau's response, and what the Conservatives will do after the election.
Tariffs on Canada and Mexico for what purpose, supposedly to stop drugs and illegals. What makes anyone with half a brain think that stopping drugs from entering the US is going to cure our drug culture, the cartels will simply find another way to bring them in because Americans want them, we have had a ‘’war on drugs’’ for decades and what has happened, the American public uses more how then ever. Our own Big Pharma spends billions to get us to us more drugs. Remember how prohibition stopped the use of alcohol? Oh, neither do I.
I hope everyone noticed that Trump dropped the tariff on energy products to 10%, a 25% tariff would not only bankrupt some companies but the American public would be devasted by the cost increases. Good thinking Trump, just fuck the public a little instead of a lot.
Canada explores further trade countermeasures
Beyond tariffs, Canada is considering additional economic actions , which could include:
・ Restrictions on energy exports , particularly in oil and natural gas .
・ Reevaluating trade partnerships with other nations, potentially shifting supply chains away from the US.
・ Targeting US companies operating in Canada with new regulations or incentives favoring domestic firms.
For more news like this, visit en.Econostrum.info .
just read some provinces are talking and taking action on full blown bans of products made in "red " states , such as booze , taking it off the shelves .
problem with that i see? its already in the country and has already been paid for by the distributor, In country .
When this blows over, and it will at some point, they will be able to put the whiskey back on the shelves and raise the prices
Why would any red blooded Canadian want to drink Kentucky Bourbon when they have Crown Royal?
Maybe so, and when this is settled, they might find themselves being sold again, but with no more being purchased by the distributors. In the meantime, buyers will seek and get used to alternatives.
I believe Canada and Mexico are either just telling Trump what he wants to hear so he'll shut up or they already had things in play and he's claiming "victory". Just like the ICE raids that were all the rage last couple weeks - too bad many of the detainees are back on the streets of the good 'ol US.