- Trump’s new tariffs on Canada, Mexico, and China are set to take effect on February 1.
- Canada and Mexico face a 25% tariff, while China is only getting a 10% tariff.
- America’s neighbors promise retaliation, and Tesla might find itself in the crosshairs.
The ‘Trump tax’ is here as the White House has announced a 25% tariff on goods and services from Canada and Mexico as well as a 10% tariff on items from China. Specifics are few and far between, but the tariffs are set to go into effect on February 1.
White House Press Secretary Karoline Leavitt suggested we’ll learn what’s impacted in about 24 hours and the lack of information sent Wall Street into a panic. The Dow Jones Industrial Average closed down 337 points as the announcement sparked a selloff.
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Department of Finance Canada said their “government stands ready to respond swiftly to any trade actions taken by the U.S.” They went on to say that “Any response will be proportionate, adaptable, and build on lessons learned from past economic and trade disruptions.” The Canadian government also promised to help businesses and employees impacted by the tariffs.
Canada’s Freeland Proposes 100% Tariff On Teslas
We’ll likely learn more about Canada’s response shortly but Chrystia Freeland, a Member of the House of Commons and a candidate to replace Prime Minister Justin Trudeau, recently told The Canadian Press there should be a 100% tariff on Teslas as well as American wine, beer and spirits. She wants “targeted” tariffs that hurt those supporting President Trump. That’s a not so subtle hint that Elon Musk painted a big target on his back.
Mexico said they’re a “leading exporter of cars, computers, televisions and refrigerators, so the imposition of tariffs would affect millions of American families, particularly in California, Texas, Florida and Arizona.”
Mexican President Claudia Sheinbaum Pardo sounded ready to retaliate as she said “We have Plan A, Plan B, [and] Plan C” ready. She added, “It is very important that the people of Mexico know that we will always defend the dignity of our people, that we will always defend respect for our sovereignty and dialogue as equals … without subordination.”
Mexico’s Economy Secretary, Marcelo Ebrard Casaubon, added Americans will be hurt as prices will rise by up to 25%. He also noted there will be “less availability of products” as well as supply chain problems.
