Tariff Tit For Tat
President Donald Trump’s blanket 25% tariffs on Mexico and Canada took effect on Tuesday, an extraordinary action aimed at bringing America’s top trading partners to heel. But it threatens to weaken the North American economy, including that of the United States, at a time of significant stress for inflation-weary consumers.
Trump also doubled the tariff on all Chinese imports to 20% from 10%. Those duties sit atop existing tariffs on hundreds of billions in Chinese goods. China and Canada immediately retaliated with tariffs on American goods, threatening to ignite a damaging trade war.
The Trump administration said the tariffs were necessary to stem the flow of fentanyl into the United States.
By Elisabeth Buchwald, CNN
The economy could be in for a roller coaster as tariffs set in and have the potential of significantly altering global trade. The nations that have tariffs levied on their good are very good at making sure their retaliatory tariffs hit the hardest against the President’s strongest supporters. The Midwest and South could bare the brunt of this trade war.
