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Starting March 4, 2025, new tariffs will be imposed on Mexican, Canadian, and Chinese imports by the United States. The President has expressed a tariff of 25% on almost all imports from Mexico and Canada and a reduced tariff of 10% for Canada's energy supplies. Furthermore, an extra 10% tariff will be put on all imports from China, making the total tariff 20%.
The Trump administration contends the tariffs are intended to slow the entry of illegal aliens and illegal drugs, specifically fentanyl, into the United States. The administration would like to pressure Mexico, Canada, and China to end illegal immigration and drug smuggling. The actions are part of President Trump's ongoing push to prioritize national security and employ trade policy to promote American interests.
These tariffs have a general impact that is expected on the economy, including possible Canadian, Mexican, and Chinese retaliation. Economists cautioned these tariffs tend to drive prices upwards to consumers and to introduce instability in financial markets. Businesses could be forced to revisit supply chain planning approaches and pricing models to accommodate them
