Starting February 1, 2025, the U.S. will implement 25% tariffs on imports from Canada and Mexico, including oil and gas products. Chinese goods will face a 10% tariff. These measures aim to address illegal immigration, drug trafficking, and trade deficits.
Canadian Prime Minister Justin Trudeau has vowed to respond “decisively and vigorously” to the U.S. tariffs, indicating that Canada is prepared for any eventuality. The Canadian government is considering imposing tariffs totaling 147 billion Canadian dollars and may reduce energy exports to the U.S. as a last resort.
Analysts warn that these tariffs could lead to increased prices for various products in the U.S., as importers are likely to pass the additional costs on to consumers. The tariffs may also disrupt long-standing economic integration in North America and strain trade relations with key partners.
The European Union is preparing to respond to potential U.S. tariffs by “hitting back fast and hard,” aiming for a negotiated solution while acknowledging President Trump’s propensity for imposing tariffs.
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Source: PAP