US President Donald Trump expanded one month after Mexico and Canada promised concessions. But Trump said on Monday that there is no place for Mexico or Canada to avoid the new tariff. The time limit of Canada-Mexico is over. And 25% tariff will be imposed from today. US President Donald Trump said that there is no scope for delay now.
25% tariff will be applicable from today
US President Donald Trump has announced that 25 percent tariffs will be imposed on Canada and Mexico from today. Trump said that there is no time to delay it. Therefore, after this announcement, the fears of trade war in North America have increased again. Trump said in the Roosevelt Room that the tariff is aimed at intensifying the fight against both American neighbors and curbing illegal immigration. However, Trump has also indicated that he wants to balance trade imbalances between the two countries and encourage more factories to transfer to the US. Trump said that 25 percent tariffs will be imposed on Canada and Mexico from today.
US stock market turmoil
After Trump’s tariff announcement, the US stock market is being seen in turmoil. The S&P 500 index declined by 2 percent. This is a sign of political and economic risk. This is an indication that Trump is bound to take political and economic risks, given the possibility of high inflation and the possible end of decades -old trading partnership with Mexico and Canada. Nevertheless, the Trump administration believes that tariff is the best option to promote American manufacturing and attract foreign investment. Commerce Secretary Howard Lutnik said on Monday that computer chip manufacturer TSMC has expanded its investment in the US due to the possibility of a separate 25 percent tariff.
‘We will take our decision’
Prior to Trump’s statement, Mexican President Shinbam said that the decision depends on the US President. Therefore, whatever decision will be his decision, we will take our own decision. Both countries have tried to take action in response to Trump’s concerns. Mexico sent 10,000 National Guard soldiers on its shared border to tighten drug trafficking and illegal immigration.
