Announcement leads to sharp sell-off on Wall Street as Trump also vows tariffs on farm products starting in April

The US will press ahead with steep tariffs on Canada and Mexico from Tuesday, Donald Trump has said, setting the stage for a trade war with his country’s two largest economic partners.

Hours before his administration was due to hit America’s closest neighbors with sweeping import duties, the US president claimed there was “no room left” for a deal to avoid their imposition. The announcement led to a sharp sell-off on Wall Street.

All Mexican exports to the US are set to face a levy of 25% under the plans. Most Canadian exports will face a 25% tariff, with energy products facing a 10% duty.

. . .

The action is set to prompt swift retaliation. “We’re ready,” said the Canadian foreign minister, Mélanie Joly.

MBFC
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  • thisorthatorwhatever@lemmy.worldEnglish
    45·
    14 hours ago

    He dreams of cutting taxes for the rich, and paying for it with tariffs on Canada. It’s his only dream. He has no clue how to run an economy. He has been bankrupt several times.

    • xmunkEnglish
      16·
      12 hours ago

      Tariffs are a tool for economic subsidies and protectionism they never fucking work as an income stream because they actively discouarge the activity they tax - they’re similar in action to sin taxes. Sin taxes discourage an activity and necessarily destroy their own revenue - they should never be seen as a tool for income outside of to minimize the harm of the activity they tax.

    • [email protected]AEnglish
      29·
      13 hours ago

      Even if running a government like a business was a good idea, putting in charge a conman that managed to bankrupt a fucking casino is well beyond dumb.

    • psmgx@lemmy.worldEnglish
      17·
      13 hours ago

      The billionaires backing him don’t care. The economy will tank and since they’ve seen record, insane profits recently they’ll buy everything up. Putin and China love this too since it will fracture US hegemony and smash north American manufacturing.

      Rent seeking behavior really is the end of empires.