Warning thousands of Americans will lose jobs as Trump sparks tariff trade war – NewsBreak
President Donald Trump ‘s threat to impose tariffs on Canada and Mexico finally materialized on Tuesday – sending shockwaves through global markets.
As of midnight, imports from Canada and Mexico are now subject to a 25% tax , with Canadian energy products facing a 10% import duty. Meanwhile, the 10% tariff Trump imposed on Chinese imports in February has been doubled to 20% .
The long-threatened levies led to immediate retaliatory action – with Beijing imposing up to 15% tariffs on a wide range of US farm exports. Canadian Prime Minister Justin Trudeau declared he would impose 25% tariffs on $30bn worth of U.S. “immediately”. He said a further $125bn of American goods would be taxed at the same rate in 21 days – and warned that thousands of U.S. jobs were now at risk.
READ MORE: Donald Trump’s first 100 days in office – from ‘building the wall’ to unleashing economic chaos
READ MORE: Mark Carney vows ‘serious response’ to Donald Trump’s 25% trade tariff on Canada
He said in a statement: “Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”
Trudeau added: “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”
Trump’s decision to begin a tariff-based face-off with some of America’s most important partners has sparked huge fears over rising inflation. But Trump seems to believe that these taxes can address some of his country’s most pressing problems. “It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said at the White House on Monday. “And now we’re using them.”
DAILY NEWSLETTER: Sign up here to get the latest news and updates from the Mirror US straight to your inbox with our FREE newsletter.
The tariffs on Canada and Mexico were initially set to commence in February, but Trump agreed to a 30-day delay to continue negotiations with the two largest U.S. trading partners. The official justification for the tariffs is to combat drug trafficking and illegal immigration, and both nations claim they’ve made strides in these areas. However, Trump has also stated that the tariffs will only be lifted if the U.S. trade imbalance with them closes, a goal unlikely to be achieved within a political timeframe. If the U.S. economy takes a hit, the tariffs may be short-lived.
Yet, Trump could also levy additional tariffs on the European Union, India, computer chips, automobiles, and pharmaceutical drugs. The American president’s actions have injected an unsettling level of unpredictability into the global economy, leaving it unstable as people speculate about his next move.
“It’s chaotic, especially compared to the way we saw tariffs rolled out in the first (Trump) administration,” commented Michael House, co-chair of the international trade practice at the Perkins Coie law firm. “It’s unpredictable. We don’t know, in fact, what the president will do.” Democratic lawmakers were swift to condemn the tariffs, and even some Republican senators expressed concern.
Trump’s actions have also attracted criticism from private industry. The Wall Street Journal, a conservative paper, said he was embarking on the ‘dumbest trade war in history’. Meanwhile, the famed investor Warren Buffett, predicted Trumps tariffs on Mexico and Canada would be treated as an ‘act of war’.
Related
U.S. economy adds jobs as federal layoffs and rising unemployment…
Julia Coronado: I think it's too early to say that the U.S. is heading to a recession. Certainly, we have seen the U.S. just continue t
The job listing site highlighting H-1B positions so Americans can…
A mysterious new job listings website recently went live, solely showing roles companies want to offer to their H-1B holders seeking Green Cards in an attempt t
Tepid February Jobs Report Boosts Odds of a June Fed…
Federal Reserve Board Chairman Jerome Powell speaks during a news conference. Photo by Chip ... [+] Somodevilla/Getty Images.Getty Images The February jobs repo
French university offers jobs to American scientists afraid of government…
As the current federal government in the U.S. has been freezing or cutting funding for several research grants, a French university has stepped in with an offer
