Trump set to ignite trade tensions with new tariffs
Donald Trump, the president of the United States, will impose tariffs on goods imported from Canada and Mexico on Saturday. The Republican's focus also includes imports from the European Union. On Friday, he reiterated previous accusations that the EU had treated America with "terrible treatment."
On Saturday (February 1), the USA may officially start a trade war with its neighbours. Donald Trump is expected to sign documents imposing 25% tariffs on goods from Canada and Mexico. He announced on Friday that the tariffs would also cover oil and gas but at a 10% rate.
As Donald Trump noted, this decision is related to trade deficits and Canada and Mexico's alleged involvement in smuggling fentanyl into the USA. He emphasized that this is not a negotiation tactic, and he does not expect concessions from America's neighbours.
Trump admitted that tariffs may lead to "short-term disruptions" in trade, and their cost may be passed on to consumers, but he expressed confidence that "people will understand."
The beginning of Donald Trump's trade war
Donald Trump does not intend to stop with Canada and Mexico. He plans to impose tariffs, although at 10%, on goods from China. As the US President confirmed, the European Union is next in line.
Trump reiterated on Friday accusations he made earlier, including during his campaign, about - as he put it - the "terrible treatment" of America by the EU despite American financial contributions to Europe's defence and aid to Ukraine.
- Am I going to impose tariffs on the European Union? Do you want the truthful answer, or should I give you a political answer? Absolutely, absolutely - said Trump, responding to reporters' questions during a ceremony signing the order appointing Doug Burgum as the new Secretary of Interior Resources.
The US President also announced imposing tariffs on semiconductors, pharmaceuticals, steel, aluminum, and copper to support American industry. On Friday, Trump also spoke with NVIDIA's CEO, Jensen Huang, about semiconductors but did not decide about export restrictions on advanced processors.
