US President Donald Trump has announced that he will follow through on his threat to impose a 25% duty on imports from Canada and Mexico this Saturday, February 1. He cited the flow of fentanyl and a large trade deficit as the reasons for his decision. This was reported by Bloomberg, according to UNN.
Details
According to Donald Trump, the introduction of tariffs on imports of goods from Canada and Mexico has several reasons: the first is migrants who have entered and are staying in the country illegally, the second is drugs, and the third is the huge subsidies that the United States provides to Canada and Mexico “in the form of a deficit.
Mexico and Canada have never been good to us in trade. They have been very unfair to us in trade. We do not need what they have
Trump added that the level of duties “may or may not increase over time.” In addition, he said that he will decide tonight whether to apply duties to Canadian oil imports, noting that this decision will depend on the price of oil.
It is noted that after the US President's comments, West Texas Intermediate crude oil futures rose above $73 per barrel. Meanwhile, the US dollar also rose to a daily high, while the Canadian dollar fell.
Recall
According to White House spokeswoman Caroline Leavitt, February 1 remains the final deadline for the 25% tariffs to be applied unless Canada and Mexico take steps to reduce the flow of illegal migrants and drugs, including fentanyl, into the United States.