United States Announced today that there will be new prices for China, Canada and Mexico starting from the next month!
Donald Trump announced that the U.S. will impose an extra 10% tariff on Chinese products starting March 4. This coincides with new tariffs on Canada and Mexico.
Chinese imports have faced a 10% tariff since early February. Trump is now increasing the rate further.
Tariffs Tied to Fentanyl Crisis
Trump accuses Canada and Mexico of allowing fentanyl into the U.S. In a Truth Social post, he stated:
“As long as this evil exists or is not seriously brought under control, the announced tariffs will go into effect.”
25% Tariff Threat Over Immigration & Drug Smuggling
In early February, Trump proposed a 25% tariff on Canada and Mexico to combat illegal immigration and fentanyl smuggling. He delayed the enforcement by 30 days just before it took effect.
With the March 4 deadline approaching, Trump warns that these tariffs will go into effect unless Canada and Mexico take action.
The last time tariffs were in vogue was in the 1930s of the last century, when America was going through an economic crisis.
Congress decided to impose tariffs on all trade, and the president did not object. Economists opposed it, as they do now. In the end, they were right.
The World Trade War did not help anyone, the American crisis became the Great Depression, and Europe plunged into World War II.
After the end, they decided that it was better to live in harmony and trade openly. Tariffs and duties were reduced not immediately, but gradually, and by the 2000s, trade barriers were almost completely eliminated.
The average tariff in the world now does not exceed a few percent – with the exception of certain obstacles, which will be discussed in more detail below.
In 2001, China was admitted to the WTO trade organization and in just a quarter of a century it transformed from a beggar country to the second largest economy in the world after the United States. It was followed by giant countries such as Russia, India, Turkey and Indonesia from poverty – all thanks to trade.
Finally, free trade allows everyone to get rich at the same time, not everyone separately. That’s how it works.
Will the new elected President deal with the relationship between U.S and China? Tell us what you think in comments.
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