Trump enacts tariffs on Canada, Mexico, China

WHITE HOUSE — 

U.S. President Donald Trump signed an bid Saturday that places 25% tariffs connected imports from Canada and Mexico and 10% tariffs connected goods from China, the White House said.

"Both Canada and Mexico person allowed an unprecedented penetration of amerciable fentanyl that is sidesplitting American citizens, and besides amerciable immigrants into our country," White House property caput Karoline Leavitt said during her briefing Friday.

Leavitt did not accidental whether determination would beryllium immoderate exemptions to the measures. "These are promises made and promises kept by the president," she said.

Asked by reporters Friday, Trump said determination was thing the 3 countries could bash to reverse his determination and that the tariffs were "not a negotiating tool."

"It's a axenic economical — we person large deficits with, arsenic you know, with each 3 of them," Trump said. "We're not looking for a concession, and we'll conscionable spot what happens."

Trump had said helium would tariff Canadian crude lipid imports astatine 10% opening Saturday. Other Canadian goods would beryllium deed with a 25% tariff.

The president vowed to enforce sweeping tariffs connected semiconductors, pharmaceuticals, alloy and aluminum, and lipid and gas.

"All forms of medicine and pharmaceuticals," Trump said. "And we'll beryllium doing, precise importantly, steel, and we'll besides beryllium doing chips and things associated with chips."

The tentative program is for the tariffs to instrumentality effect connected Tuesday.

Trump warned helium would "absolutely" spot tariffs connected goods from the European Union.

"They're treating america truthful badly," helium said.

Outgoing Canadian Prime Minister Justin Trudeau said his state would respond.

"We're moving hard to forestall these tariffs, but if the United States moves ahead, Canada's acceptable with a forceful and contiguous response," helium posted connected societal media.

Meanwhile, Mexico had a much muted response. Its economical ministry posted a connection connected societal media saying that Mexico and the United States were "partners, not competitors."

Tariffs could backfire

China, Mexico and Canada relationship for much than one-third of the goods and services imported into oregon bought from the United States.

Some economists pass that the tariffs could backfire.

Imports from Mexico and Canada marque up astir 3% of U.S. GDP, portion exports marque up astir 2.5% percent of U.S. GDP, said Brad Setser, a elder chap astatine the Council connected Foreign Relations

A 25% tariff connected Mexico and Canada amounts to a "tax hike connected imports from those countries" and volition "have an contiguous and antagonistic interaction connected the U.S. economy," helium told VOA. "It's a strategy for shrinking the U.S. economy."

Trump has agelong threatened to enforce tariffs to unit countries to assistance his medication halt amerciable migration and the smuggling of chemicals utilized for fentanyl. He has pledged to usage tariffs to boost home manufacturing and has praised its usage arsenic an effectual economical policy.

Trump believes that "tariffs are a large root of leverage," and that helium volition "convince Canada and Mexico to marque large concessions nether the menace of tariffs," Setser said. "But these measures are going to beryllium beauteous costly to the U.S."

Trump acknowledged that the tariffs mightiness origin a "short-term disruption" for consumers but said it would pb to a semipermanent payment for U.S. manufacturing.

"Tariffs don't origin inflation. Tariffs origin success," helium said.

During his archetypal medication successful 2018, Trump negotiated and signed the United States-Mexico-Canada escaped commercialized agreement, successful portion to constrictive the United States' large commercialized shortage — the spread betwixt what it sells and what it buys — with its neighbors. He erstwhile called the woody "the fairest, astir balanced and beneficial commercialized statement we person ever signed into law."

However, the U.S. shortage successful the commercialized of goods with Mexico has widened from $106 cardinal successful 2019 to $161 cardinal successful 2023, according to authorities data. The commercialized spread successful goods with Canada has besides increased, from $31 cardinal successful 2019 to $72 cardinal successful 2023.

"He's present acting similar his woody caused a catastrophe needing an exigency fix," said Derek Scissors, a elder chap astatine the American Enterprise Institute.

There's nary justification for precocious tariffs connected Canada, a marketplace system that's not successful the apical 5 of U.S. commercialized deficits, Scissors said. "Fentanyl shipments crossed the Canadian borderline are tiny," helium added.

Fentanyl and amerciable migration are justifications for borderline restrictions connected Mexico, Scissors said. However, tariffs "don't halt amerciable migration and astir apt promote it by threatening jobs successful Mexico."

The banal marketplace erased aboriginal gains and closed little Friday aft the White House announcement connected tariffs.

Kim Lewis contributed to this report.