Guest Posted February 2 Posted February 2 US President Donald Trump signs executive orders following the inauguration ceremony on Capitol Hill in Washington. Pool/Getty Images North America/Getty Images CNN — President Donald Trump imposed new tariffs on Mexico, Canada and China, signing them at his Mar-a-Lago club in Florida on Saturday. The Trump administration said the tariffs are aimed at stemming the flow of drugs and undocumented immigrants into the United States, but they risk potentially substantial price increases for American consumers on a wide range of common goods. The new policy is a reversal of the virtually duty-free trade between the three nations that has existed for several years and an expansion of a trade war between China and the United States that has escalated over the course of the past two administrations. As Trump has repeatedly promised in recent months, the tariffs will amount to a 25% duty on all imports from Mexico and most goods from Canada and a 10% tariff on Chinese products imported into the United States. While Trump administration officials said Saturday that the tariffs were designed to stem the flow of fentanyl and undocumented immigrants, they gave no specific benchmark for when the new import taxes would be lifted — other than stopping drugs and undocumented immigrants from entering the country. Notably, the tariffs include one important exception: The tariff on Canadian energy products will be 10%. Many Americans rely on Canadian energy products, including oil, for gasoline and home heating. The cost of these products could rise when the tariffs are implemented. Saturday’s tariffs amount to the start of what could escalate into a global trade war, with the potential for higher costs, disrupted supply chains and job losses. Even Trump acknowledged the possibility of adverse consequences for American consumers. The tariffs are one of the few policies Trump has consistently supported for decades, a rare throughline from his days as a New York real estate developer to his time in public office (another being immigration). As a candidate, he vowed to use tariffs — “the most beautiful word in the dictionary” — to exert influence abroad. In his announcement of the tariffs, Trump said drug trafficking organizations have an “intolerable alliance” with the Mexican government. CNN has reached out to the Mexican presidency for comment and is awaiting a response. “Minimize any disruptive effect” The Trump administration, in imposing steep tariffs on Saturday against imports from three of its largest trading partners, opted to apply a more moderate duty on energy imports from Canada to “minimize any disruptive effect” domestically. “The 10% rate on energy will minimize any disruptive effect we may have on gasoline and diesel prices for home heating,” Peter Navarro, President Trump’s trade adviser, said Saturday on a call with reporters. It includes “all” energy products, including electricity, natural gas and oil, Navarro said. “This was a smart decision that was made, and we’re moving forward there,” he added. Where 25% tariffs on Mexican and Canadian goods could hit Americans hardest Here’s where a 25% tariff on Mexican and Canadian goods could hit Americans hardest: Autos and auto parts: The United States imported $87 billion worth of motor vehicles and $64 billion worth of vehicle parts from Mexico last year, excluding December, according to Commerce Department data. Motor vehicles were also the second-most imported good by the U.S. from Canada last year through November, totaling $34 billion. American auto companies have been able to keep production costs down by hiring lower-wage workers, particularly in Mexico, where much of the production has moved in recent years. Those cost savings could be wiped out if a 25% tariff is imposed. Food and Alcohol: Last year, the U.S. imported $46 billion worth of agricultural products from Mexico, according to data from the Department of Agriculture. Mexico's largest agricultural import category last year was fresh fruit, of which the U.S. imported $9 billion, $3.1 billion of which was avocados. All of these products will now cost consumers more, especially given that grocery stores are now more expensive to import. Link: https://cnnespanol.cnn.com/2025/02/01/eeuu/trump-impone-aranceles-mexico-canada-china-trax
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