Trade War: As per his promise, US President Donald Trump has taken a big step in international trade and announced to impose heavy tariff on Canada, Mexico and China. According to the White House, from Saturday, 25% duty will be imposed on imports from Canada and Mexico and 10% duty on imports from China. However, the administration has not given any information on whether there will be any relief in these.
Big decision of the White House
Republican leader Trump has imposed this tariff with the aim of promoting illegal migration, drug trafficking and domestic manufacturing. White House press secretary Caroline Levitt announced that what the president had promised is now being fulfilled. However, Trump may consider continuing the exemption on oil imports from Canada and Mexico, but there is no official confirmation on this.
Response of Canada and Mexico on Trump’s Decision on Tarrif
Canada and Mexico have reacted sharply to Trump’s decision. Canadian Prime Minister Justin Trudeau warned that if the tariff is implemented, Canada is ready to give an appropriate response, although he did not give details. At the same time, Mexican President Claudia Shanbaum said that her government is already keeping ‘Plan A, Plan B and Plan C’ ready for every decision of America.
According to the US Energy Information Administration (EIA), in October, the US imported 4.6 million barrels of crude oil from Canada and 563,000 barrels from Mexico per day, while America’s own daily production was about 13.5 million barrels. This new tariff may affect the trade relations between America and these countries.
Warning was given earlier by Donald Trump
Donald Trump had made it clear during his election campaign that he would take tough decisions to stop illegal immigration and foreign manufacturing. He had repeatedly said that if he came to power, tariffs would be imposed on Canada, Mexico and China. Now that they have taken this step, it will be interesting to see the reaction of these countries and its impact on the global market in the coming days.
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