Donald Trump has made an unexpected move involving tariffs amid strong responses from countries such as Canada and Mexico, which have been impacted.
Close to 50 days after the US president returned to the White House for a second term, Trump has certainly brought about a lot of changes.
The 47th POTUS has signed off on many executive orders – which have included halting the ban on TikTok, and declaring that there are ‘only two genders’ among others.
Tariffs have also been a huge talking point, with countries such as Mexico, Canada and China feeling the brunt of it.
Trump has made an unexpected move with tariffs (ROBERTO SCHMIDT/AFP via Getty Images)
The tariffs have been introduced to tackle what the White House has described as an ‘extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl’.
Essentially, tariffs are taxes imposed on foreign goods, meaning many of these goods will cost more to sell in the US – which could ultimately be passed on to the consumer.
Following the order coming into play, China announced plans to impose taxes of 15 percent on coal and liquified natural gas from the US, as well as a 10 per cent levy on crude oil, farming equipment, and some cars.
As for Canada, they are imposing 25 per cent tariffs on CA $155 billion of US goods, with an emotional prime minister Justin Trudeau saying on Thursday (March 6): “I am here to tell you all that we got you.”
Also on Thursday, Trump signed two executive orders to pause tariffs for a month on imports that are subject to a pre-existing trade agreement.
The United States-Mexico-Canada Agreement (USMCA) means that around 38 per cent of imports from Canada and 50 per cent from Mexico will avoid the tariffs introduced by Trump, the White House has said.
Canadian Prime Minister Justin Trudeau (DAVE CHAN/AFP via Getty Images)
The measure is just temporary though, with all imports being subjected to the tariffs come April 2.
Speaking of the changes that have been made to the markets after signing off the orders, Trump has said: “I’m not even looking at the market.
“A lot of them are globalist … companies that won’t be doing as well because we’re taking back things that have been taken from us years ago. We’ve been treated very unfairly.”
Trump had previously taken to Truth Social to announce his plans after speaking to Mexican President Sheinbaum.
He wrote: “I did this as an accommodation, and out of respect for, President Sheinbaum. Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl.”
