Following a White House announcement, the United States government increased tariffs on China, Mexico, and Canada on Saturday night. President Donald Trump's action is viewed as the beginning of a trade war.
Since it is anticipated that the conflict will spread to other nations, it does not appear to be restricted to a small number of them.
The Trump administration has levied an additional tariff of 25 per cent on imports from Canada and Mexico and 10 per cent on those from China. Oil imports from Canada will, however, be subject to a lower levy of 10 per cent.
The inflow of “Illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency”, the White House said in a factsheet detailing and explaining the tariff hikes. “President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” it added.
US President Donald J Trump tweeted, "Today, I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl. We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favour of it."
This is expected to be just the first salvo in President Trump’s promise to use tariffs to address trade and non-trade issues with key trading partners. “The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis,” the White House fact sheet read.
“Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organisations.”
The White House went on to castigate the Mexican government for working in cahoots with the Mexican cartels that are bringing these drugs into the US. “The Mexican drug trafficking organizations have an intolerable alliance with the government of Mexico,” it said, adding, “The government of Mexico has afforded safe havens for the cartels to engage in the manufacturing and transportation of dangerous narcotics, which collectively have led to the overdose deaths of hundreds of thousands of American victims”
These cartels are also present in Canada, the White House said. “A recent study recognised Canada's heightened domestic production of fentanyl, and its growing footprint within international narcotics distribution,” the factsheet added.