The United States, through Commerce Secretary Howard Lutnick, is poised to impose tariffs on Canada and Mexico, potentially escalating trade tensions. With proposed tariffs reflecting prior discussions, the implications for American consumers could be significant. Treasury Secretary Scott Bessent plans to appoint an affordability czar to address inflation, seeking cooperation from Mexico and Canada in similar tariffs on China.
Commerce Secretary Howard Lutnick announced that the United States is likely to impose tariffs on Canada and Mexico as early as Tuesday, though the specifics remain subject to President Donald Trump’s final decision. While Lutnick conveyed anticipation for these tariffs, he noted the fluidity of the situation, indicating that exact rates will be determined by presidential negotiations.
Previously proposed tariffs included a 25% duty on Mexican imports and a 10% tariff on most Canadian goods. Additionally, importing Chinese goods would incur a new 10% tariff. These tariffs had suffered delays, but Trump had already enacted a 10% tariff on China, and Lutnick suggested further tariffs on Chinese imports are still on the agenda for Tuesday.
Economists warn that tariffs on the top three trading partners of America could result in increased prices for essential goods such as electronics, groceries, and vehicles, ultimately impacting American consumers and businesses. This comes in a climate where inflation rates have shown some easing, but the effects of prolonged inflation persist.
Secretary Bessent informed CBS News that Mexico is willing to implement matching tariffs on China, suggesting this could pave the way for similar actions from Canada. He remarked that these retaliatory measures by Tuesday could shape the future of trade relations.
Furthermore, Bessent announced the plan to appoint an “affordability czar” aimed at mitigating inflationary pressures by focusing on key areas that affect working-class Americans. He is also considering the establishment of an “affordability council” to streamline efforts against rising costs.
In summary, imminent tariffs on Canada and Mexico by the United States are expected to impact prices for various consumer goods, as indicated by Secretary Lutnick. The proposed tariffs raise concerns over inflation, even as plans for an affordability czar emerge to tackle these issues. Overall, the decisions taken this week will be critical in shaping trade and economic stability moving forward.
Original Source: www.cnn.com
