President Trump Imposes New Tariff on Canada, Mexico and China

President Donald Trump announced the implementation of the long-threatened 25% US tariff against Canada and Mexico, today. According to the US president, import taxes will force the US neighbouring states to take more actions to curb illegal drugs and migrants entering the country.

World Eyes Effects

As a reaction to Trump’s introduction of new tariffs on America’s two biggest trading partners, markets across the globe dropped. A 10% tariff will be imposed on Chinese goods also. This comes after Beijing did not live up to Trump’s expectation of doing enough to stop the flow of fentanyl into the US. This will come along with the tariff imposed on Chinese goods last month, which brings the levies on imports from China to 20%.

All three countries, Canada, Mexico, and China, have officially said that they will retaliate against the US in response to the status. This will be done by raising the prospects of a wider trade war.

Now the experts have warned that American consumers are likely to face higher costs for certain products because of increasing tariffs on imported goods, which require cheaper production costs.