In an announcement from the White House, they supported their tariff plan by stating “Tariffs are a powerful, proven source of leverage for protecting the national interest,” Trump also expressed a lack of fear for the impact on the U.S. economy, stating “While trade accounts for 67% of Canada’s GDP, 73% of Mexico’s GDP, and 37% of China’s GDP, it accounts for only 24% of U.S. GDP.”Trump sees tariffs as a significant source of revenue for the U.S, as noted by the NYT. However there have been strong warnings of a hike in vehicle prices in response to the tariffs. In an article from The Verge, it was noted that virtually every car company would be impacted by the costs, providing direct examples of imports from Canada and Mexico well-known car models. Examples included: Ford’s F-series trucks and Mustangs with engines from Canada and Mazda CX-50s from Mexico. Another point made by The Verge was that the costs from additional tariffs will even itself out across the supply chain, eventually making its way to the customer and raise car prices.
Trump agrees to pause import tariffs on Canada and Mexico
United States (U.S.) President Donald Trump has agreed to pause his newly-announced tariffs on Canada and Mexico for 30 days.
Trump initially introduced the 25% additional tariff on imports from Canada and Mexico in order to halt illegal immigration and drugs from entering the nation.
Amid warnings of a trade war, Trump and Canadian Prime Minister Justin Trudeau reached a temporary agreement on securing the border in order to pause the tariffs for at least 30 days.
