WASHINGTON (AP) — In anticipation of the implementation of tariffs set to commence on Tuesday, President Donald Trump took to social media to announce that he had engaged in a conversation on Monday morning with Canadian Prime Minister Justin Trudeau and was scheduled for a follow-up discussion at 3:00 P.M. Trump also indicated his intention to speak with his Mexican counterpart on the same day. Both Canada and Mexico are gearing up to impose their own tariffs in response to actions taken by the United States.
The Republican president reiterated his grievances against Canada in his social media post, despite the long-standing friendship and alliances spanning back to World War II and the joint response to the 9/11 terrorist attacks on the United States. Trump expressed frustration over what he perceives as Canada’s lack of cooperation, pointing out restrictions on U.S. banks operating in the country. He further alluded to issues such as the drug war, emphasizing the devastating impact of drug-related deaths in the U.S. resulting from illicit substances flowing across the borders of Mexico and Canada.
With the impending tariffs affecting financial markets, businesses, and consumers, concerns are mounting over the potential repercussions. Alongside the tariffs targeting China, there are apprehensions about inflation spikes and disruptions to global trade and economic growth. Market indices indicated a minor decline, suggesting a glimmer of hope that the adverse effects of the import taxes might be short-lived.
However, there remains a cloud of uncertainty surrounding the policies of a Republican president known for his outspoken support of tariffs. Trump’s remarks have highlighted his belief that the U.S. erred in transitioning to income taxes as its primary revenue source in 1913, advocating for tariffs instead. The president indicated that the tariffs could be lifted if Canada and Mexico take more decisive action against illegal immigration and the smuggling of fentanyl, although concrete benchmarks for compliance are lacking. Additionally, Trump emphasized the need to address the trade imbalances with the U.S.’s major economic partners.
Under the impending tariff regime, Mexico faces a 25% tariff, while Canada is slated for a 25% tariff on imports to the U.S. and 10% on its energy products. China, on the other hand, is subject to an additional 10% tariff due to its involvement in the production and distribution of fentanyl, as asserted by the Trump administration.
