Once again, the debate over tariffs is heating up as two of the United States' largest trading partners — Canada and Mexico — find themselves in the crosshairs of President Donald Trump, who stated that tariffs on these countries are "going forward."
"The tariffs are going forward on time on schedule," Trump said Monday from the White House, reiterating his concerns regarding trade imbalances with the two countries.
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Earlier in February, President Trump threatened to impose a 25% tariff on imports from Canada and Mexico. However, he backed off and granted a 30-day pause after leaders from both nations assured President Trump they were taking steps to protect America’s borders and reduce the flow of illegal drugs.
Should tariffs on goods from Canada and Mexico be enacted, they could lead to higher prices for American consumers. Notable imports from Canada include crude oil, car parts, machinery, and plastics, while top goods from Mexico consist of fruits and vegetables, motor vehicles, and electronics.
Tariffs are becoming an increasingly significant part of the Trump administration's agenda. U.S. Secretary of Commerce Howard Lutnick recently suggested that additional tariffs could provide the administration with further flexibility to eliminate parts of the IRS and reduce taxes for all Americans.
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Prominent economists, including those from major companies like Walmart, have noted that new tariffs often end up raising costs for consumers, with the burden typically shifted onto them through higher prices.
The University of Michigan recently reported a nearly 10% drop in its consumer sentiment index since January, reflecting concerns about impending tariff-induced price increases.
Throughout his political career, President Trump has frequently threatened to use tariffs, only to retreat as deadlines approach. Leaders in Mexico have expressed confidence in their ability to negotiate a deal with President Trump, again.
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