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TMI BlogUS tariffs take effect and Mexico, Canada and China retaliate with their own tariffs on the USX X X X Extracts X X X X X X X X Extracts X X X X ..... US tariffs take effect and Mexico, Canada and China retaliate with their own tariffs on the US X X X X Extracts X X X X X X X X Extracts X X X X ..... kindled inflation and paralysing uncertainty for business. Just after midnight, Trump imposed 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy. Trump also doubled the tariff he slapped last month on Chinese products to 20%. Beijing retaliated with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U.S. companies subject to export controls and other restrictions by about two dozen. Canadian Prime Minister Justin Trudeau said his country would plaster tariffs on more than $100 billion of American goods over the course of 21 days. “Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same, they are talking about working pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” Trudeau said. Mexican President Claudia Sheinbaum said Mexico will respond to the new taxes with its own retaliatory tariffs. Sheinbaum said she will announce the products Mexico will target on Sunday in a public event in Mexico City's central plaza. The delay might indicate that Mexico still hopes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to de-escalate the trade war set off by Trump. Trump is abandoning the free trade policies the US pursued for decades after World War II. He argues that open trade cost America millions of factory jobs and that tariffs are the path to national prosperity. He rejects the views of mainstream economists who contend that such protectionism is costly and inefficient. Import taxes are “a very powerful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... weapon that politicians haven't used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday at the White House. “And now we're using them.” Dartmouth College economist Douglas Irwin, author of a 2017 history of U.S. tariff policy, has calculated that Tuesday's hikes will lift America's average tariff from 2.4% to 10.5%, the highest level since the 1940s. “W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e're in a new era for sure." US markets dropped sharply Monday after Trump said there was “no room left” for negotiations that could lower the tariffs. Shares were mostly lower Tuesday after they took effect. According to estimates by the Yale University Budget Lab, Trump's tariffs amount to a tax hike of roughly $1.4 trillion to $1.5 trillion over 10 years and would disproportionately hit lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -income households. Trump has said tariffs are intended to address drug trafficking and illegal immigration. But he's also said the tariffs will come down only if the U.S. trade deficit narrows. The tariffs may be short-lived if the U.S. economy suffers. But Trump could also impose new tariffs on the European Union, India, computer chips, autos and pharmaceutical drugs. The American president h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as injected a disorienting volatility into the world economy, leaving it off balance as people wonder what he will do next. During his first term, Trump imposed tariffs only after lengthy investigations — into the national security implications of relying on foreign steel, for example, said Michael House, co-chair of the international trade practice at the Perkins Coie law firm. But by declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a national emergency last month involving the flow of immigrants and illicit drugs across US borders, “he can modify these tariffs with a stroke of the pen,'' House said. “It's chaotic." Democratic lawmakers were quick to criticise the tariffs. “Donald Trump is not a king," Rep. Gregory Meeks, top Democrat on the House Foreign Affairs Committee, said in a statement. "Presidents don't get to inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent emergencies to justify bad policies. Abusing emergency powers to wage an economic war on our closest allies isn't leadership — it's dangerous.” Even some Republican senators raised alarms. "Maine and Canada's economy are integrated,” said Sen. Susan Collins, R-Maine, explaining that much of the state's lobsters and blueberries are processed in Canada and then sent back to the U.S. Truck driv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Carlos Ponce, 58, went about business as usual Tuesday morning, transporting auto parts from Ciudad Juarez, Mexico, to El Paso, Texas, just as he's done for decades. Like many on the border, he was worried about the fallout from the tariffs. “Things could change drastically,” Ponce said. Transporters like him could lose their jobs or have to drive farther to coastal ports as Mexican manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers look for trading partners beyond the U.S. Alan Russell, head of Tecma, which helps factories set up in places like Ciudad Juarez, is skeptical that Trump's tariffs will bring manufacturing back to the United States. "Nobody is going to move their factory until they have certainty,” Russell said. Just last week, he said, Tecma helped a North Carolina manufacturer that moved to Mexico because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it couldn't find enough workers in the US. (AP) SKY SKY SKY X X X X Extracts X X X X X X X X Extracts X X X X
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