President Donald Trump signed the long-promised economic policy on Saturday, which included extraordinary new tariffs on Mexico, Canada, and China.
The Trump administration claims that tariffs aim to decrease the flow of undocumented immigrants and drugs into the United States. However, they may result in major hikes in prices for American consumers in a variety of common goods.
Canadian Prime Minister Justin Trudeau announced retaliatory levies, and Mexican President Claudia Sheinbaum announced that her country would impose retaliatory tariffs hours later. The Chinese commerce ministry has announced that it will submit a complaint to the World Trade Organization and implement the necessary countermeasures.
The tariffs and retaliation have sparked a trade war that could have devastating effects on both the American and target economies. A clause in Trump’s executive order permits him to increase tariffs in the event that another country imposes additional tariffs on the US.
The new policy reverses years of duty-free trade between the three North American nations and escalates a frosty trade war between China and the US.
