President Donald Trump’s new tariffs on China started today, just before he was scheduled to speak with China’s President, Xi Jinping. Meanwhile, tariffs on Canada and Mexico are being delayed for at least a month.
On Saturday, Trump signed three executive orders to put tariffs on China, Canada, and Mexico. These tariffs were set to begin on February 4. He said the reason for these tariffs was that these countries were not doing enough to stop fentanyl, a dangerous drug, from being sent into the U.S. He also wanted Canada and Mexico to help reduce illegal immigration.
The order Trump signed on February 1 placed a 10% tariff on Chinese products coming into the U.S. It also stated that if China retaliates, the U.S. might increase or expand the tariffs. These tariffs officially started on February 4.
China quickly responded by placing 15% tariffs on U.S. coal and natural gas, and 10% tariffs on U.S. crude oil, farm equipment, and large cars. These new tariffs will begin on February 10. China also announced restrictions on exporting certain rare earth minerals, which are important for advanced technology and clean energy.
In addition, China launched an investigation into Google’s parent company, Alphabet, for possible monopoly behavior. It also added the biotech company Illumina and fashion brand PVH Corp. (which owns Calvin Klein) to its “unreliable entities list.”
Trump’s February 1 executive order also put a 25% tariff on products from Canada, along with a 10% tariff on Canadian energy goods. These were set to begin on February 4.
Canada fought back by announcing 25% tariffs on U.S. exports, including beer, wine, bourbon, fruit, clothing, sports equipment, and home appliances. Prime Minister Justin Trudeau also said Canada might take action in other areas, like minerals and energy.
On Monday, Trump and Trudeau spoke and agreed to delay the tariffs for one month. Canada also promised to send 10,000 personnel to help secure the U.S.-Canada border and to follow through with a $1.3 billion border security plan.
After this agreement, Trump signed an order pausing the tariffs until March 4. However, he warned that if drug and immigration problems do not improve, the tariffs could still be put in place.
Trump also announced a 25% tariff on products from Mexico starting February 4. However, Mexico’s government promised to fight back with its own tariffs, though President Claudia Sheinbaum did not say exactly what products would be affected.
After a phone call between Trump and Sheinbaum on Monday, the two leaders agreed to pause the tariffs. In return, Mexico will send 10,000 National Guard members to the U.S.-Mexico border to help stop drug trafficking and illegal immigration. Sheinbaum also said the U.S. will help stop illegal gun smuggling into Mexico.
Just like with Canada, Trump signed an order pausing the tariffs until March 4. He also warned that if Mexico does not make enough progress in securing the border, the tariffs could still be enforced.
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