Trump's tariffs take effect; Mexico, Canada and China retaliate with their own tariffs on the US
President Donald Trump launched a trade war Tuesday against America바카라 게임 웹사이트s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin as the U.S. faced the threat of rekindled inflation and paralyzing uncertainty for business.
Just after midnight, Trump imposed 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy. Trump also doubled the tariff he slapped last month on Chinese products to 20%.
Beijing retaliated with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.
Canadian Prime Minister Justin Trudeau said his country would plaster tariffs on more than $100 billion of American goods over the course of 21 days.
바카라 게임 웹사이트Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying murderous dictator. Make that make sense,바카라 게임 웹사이트 Trudeau said.
Later in the day, Commerce Secretary Howard Lutnick said the U.S. would likely meet Canada and Mexico 바카라 게임 웹사이트in the middle,바카라 게임 웹사이트 with an announcement coming as soon as Wednesday.
Lutnick told Fox Business 온라인 바카라 게임 that the tariffs would not be paused, but that Trump would reach a compromise.
바카라 게임 웹사이트I think he바카라 게임 웹사이트s going to figure out, you do more, and I바카라 게임 웹사이트ll meet you in the middle in some way,바카라 게임 웹사이트 Lutnick said.
Mexican President Claudia Sheinbaum said Mexico will respond to the new taxes with its own retaliatory tariffs. Sheinbaum said she will announce the products Mexico will target on Sunday in a public event in Mexico City바카라 게임 웹사이트s central plaza, perhaps with the delay indicating Mexico still hopes to de-escalate the trade war set off by Trump.
The president is abandoning the free trade policies the United States pursued for decades after World War II. He argues that open trade cost America millions of factory jobs and that tariffs are the path to national prosperity. He rejects the views of mainstream economists who contend that such protectionism is costly and inefficient.
Import taxes are 바카라 게임 웹사이트a very powerful weapon that politicians haven바카라 게임 웹사이트t used because they were either dishonest, stupid or paid off in some other form,바카라 게임 웹사이트 Trump said Monday at the White House. 바카라 게임 웹사이트And now we바카라 게임 웹사이트re using them.바카라 게임 웹사이트
Dartmouth College economist Douglas Irwin, author of a 2017 history of U.S. tariff policy, has calculated that Tuesday바카라 게임 웹사이트s hikes will lift America바카라 게임 웹사이트s average tariff from 2.4% to 10.5%, the highest level since the 1940s. 바카라 게임 웹사이트We바카라 게임 웹사이트re in a new era for sure."
U.S. markets dropped sharply Monday after Trump said there was 바카라 게임 웹사이트no room left바카라 게임 웹사이트 for negotiations that could lower the tariffs. Shares were mostly lower Tuesday after they took effect.
The Yale University Budget Lab estimates that Trump바카라 게임 웹사이트s tariffs amount to a tax hike of $1.4 trillion to $1.5 trillion over 10 years and would disproportionately hit the poor.
Trump has said tariffs are intended to address drug trafficking and illegal immigration. But he's also said the tariffs will come down only if the U.S. trade deficit narrows.
The American president has injected a disorienting volatility into the world economy, leaving it off balance as people wonder what he will do next.
During his first term, Trump imposed tariffs only after lengthy investigations 바카라 게임 웹사이트 into the national security implications of relying on foreign steel, for example, said Michael House, co-chair of the international trade practice at the Perkins Coie law firm.
But by declaring a national emergency last month involving the flow of immigrants and illicit drugs across U.S. borders, 바카라 게임 웹사이트he can modify these tariffs with a stroke of the pen,바카라 게임 웹사이트바카라 게임 웹사이트 House said. 바카라 게임 웹사이트It바카라 게임 웹사이트s chaotic."
Democratic lawmakers were quick to criticize the tariffs.
바카라 게임 웹사이트Donald Trump is not a king," Rep. Gregory Meeks, top Democrat on the House Foreign Affairs Committee, said. "Presidents don바카라 게임 웹사이트t get to invent emergencies to justify bad policies. Abusing emergency powers to wage an economic war on our closest allies isn바카라 게임 웹사이트t leadership 바카라 게임 웹사이트 it바카라 게임 웹사이트s dangerous.바카라 게임 웹사이트
Even some Republican senators raised alarms. "Maine and Canada바카라 게임 웹사이트s economy are integrated,바카라 게임 웹사이트 said Sen. Susan Collins, R-Maine, explaining that much of the state바카라 게임 웹사이트s lobsters and blueberries are processed in Canada and then sent back to the U.S.
Truck driver Carlos Ponce, 58, went about business as usual Tuesday morning, transporting auto parts from Ciudad Juarez, Mexico, to El Paso, Texas, just as he바카라 게임 웹사이트s done for decades.
Like many on the border, he was worried about the fallout from the tariffs. 바카라 게임 웹사이트Things could change drastically,바카라 게임 웹사이트 Ponce said. Truckers could lose their jobs or have to drive farther to coastal ports as Mexican manufacturers look for trading partners beyond the U.S.
Alan Russell, head of Tecma, which helps factories set up in places like Ciudad Juarez, is skeptical that Trump바카라 게임 웹사이트s tariffs will bring manufacturing back to the United States.
"Nobody is going to move their factory until they have certainty,바카라 게임 웹사이트 Russell said. Just last week, he said, Tecma helped a North Carolina manufacturer that moved to Mexico because it couldn바카라 게임 웹사이트t find enough workers in the United States.
U.S. businesses near the Canadian border scrambled to deal with the impact. Gutherie Lumber in suburban Detroit reached out Tuesday to Canadian suppliers about the cost of 8-foot wood studs. About 15% of the lumber at Gutherie yard in Livonia, Michigan, comes from Canada.
Sales manager Mike Mahoney said Canadian suppliers are already raising prices. 바카라 게임 웹사이트They바카라 게임 웹사이트re putting that 25% on studs.'' Builders will strain to stay within their budgets.
Retaliation will likely pinch U.S. businesses.
After years of effort and thousands of dollars in investment, Tom Bard, a Kentucky craft bourbon distiller, gained a foothold in the Canadian provinces of British Columbia and Alberta and watched his sales grow north of the border. Now Kentucky bourbon is in Canada's crosshairs, and an order from his Canadian distributors is on hold.
바카라 게임 웹사이트That hurts,바카라 게임 웹사이트 he said. At his small distillery "every single pallet that goes out the door makes a huge difference ... The last thing you want is to have an empty spot where your bottles are supposed to be on a shelf.바카라 게임 웹사이트
Bard co-owns the Bard Distillery with his wife, Kim, in western Kentucky's Muhlenberg County, about 135 miles southwest of Louisville, Kentucky.
Trump overwhelmingly carried Kentucky in the November election. In Muhlenberg County, Trump defeated Kamala Harris by a more than 3-to-1 margin.
The China tariffs threaten the U.S. toy industry. Greg Ahearn, president and CEO of the Toy Association, said the 20% tariffs on Chinese goods will be 바카라 게임 웹사이트crippling,바카라 게임 웹사이트 as nearly 80% of toys sold in the U.S. are made in China.
Steve Rad, CEO of the Austin, Texas-based toy maker Abacus Brands Inc., hopes to find ways to avoid raising prices in the wake of the 20% tax on Chinese goods.
The company will have to 바카라 게임 웹사이트go to war바카라 게임 웹사이트 with its pricing and cost structure and figure out how to avoid penalizing consumers. For one product, a $39.99 kit that teaches children how volcanoes work, he바카라 게임 웹사이트s thinking of switching to cheaper, lower-quality paper.
Rachel Lutz owns the Peacock Room, four women바카라 게임 웹사이트s boutique shops with about 15 employees in Detroit. She바카라 게임 웹사이트s been bracing for the tariffs but doesn바카라 게임 웹사이트t understand the logic behind them.
바카라 게임 웹사이트I바카라 게임 웹사이트m struggling to see the wisdom in picking a fight with our largest trading partner that we바카라 게임 웹사이트ve had historically wonderful relationships with,바카라 게임 웹사이트 Lutz said Tuesday from her shop. 바카라 게임 웹사이트I바카라 게임 웹사이트m struggling to really understand how they can바카라 게임 웹사이트t see that will profoundly impact our economy in ways that I think the American consumer has not predicted. We바카라 게임 웹사이트re about to find out."
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Gillies reported from Toronto. Associated Press writers Anne D바카라 게임 웹사이트Innocenzio in New York; Corey Williams in Detroit, Bruce Schreiner in Louisville, Kentucky; Didi Tang and Lisa Mascaro in Washington; and Megan Janetsky and Maria Verza in Mexico City contributed to this report.