Trump’s potentially threatened rates against Canada and Mexico are now in force, starting the trade war

Washington (AP) – President Donald Trump’s Very threatened Tariffs against Canada and Mexico Finally, it entered into force on Tuesday, putting the global markets at the limit and establishing expensive reprisals for the American allies of the United States.

Starting almost after midnight, imports from Canada and Mexico will now be taxed at 25%, and Canadian energy products are being tariffed with 10%. In addition, the 10% rate that Trump put in Chinese imports in February is doubled at 20%.

In response, Canadian Prime Minister Justin Trudeau said that his country would slapp tariffs on more than $ 100 billion of US goods during 21 days. Mexico and China immediately detail any retaliation measures.

The movements of the president of the United States increased the fears of greater inflation and the perspective of a devastating commercial war, even when he promised the American public that import taxes are the easiest way towards national prosperity. He has shown the will to reduce the warnings of conventional economists and put their own public approval on the line, believing that tariffs can fix what affirms to the country.

“It is a very powerful weapon that politicians have not used because they were dishonest, stupid or paid in some other way,” Trump said Monday at the White House. “And now we are using them.”

It was supposed that the tariffs of Canada and Mexico would originally begin in February, but Trump agreed a 30 -day suspension to negotiate more with the two largest American business partners. The declared reason for tariffs is address drug trafficking And illegal immigration, and both countries say they have progressed in these issues. But Trump has also said that tariffs will only be reduced if the commercial imbalance of the United States closes, it is unlikely that a process in a political timeline will be resolved.

There is the possibility that tariffs are of short duration if the US economy suffers, just as there is the possibility of more rates to reach the European Union, India, computer chips, cars and pharmaceutical drugs, as Trump has promised. The US president has injected disorienting volatility into the world economy, leaving him out of balance when people ask what he will do next.

“It is chaotic, especially compared to the way we saw tariffs implemented in the first administration (Trump),” said Michael House, co -president of international commercial practice in the Perkins Coie law firm. “It is unpredictable. We do not know, in fact, what the president will do. ”

Democratic legislators quickly criticized tariffs, but even some Republican senators gave alarms.

Senator Susan Collins, R-Maine, said she is “very worried” for rates that enter into force due to the proximity of her state to Canada.

“The economy of Maine and Canada are integrated,” said Collins, explaining that a large part of the lobsters and blueberries of the state are processed in Canada and then send back to the United States.

The world economy is now trapped in the fog of what appears to be a commercial war.

Even after Trump announced Monday that the tariffs were in the future, Canadian officials were still in contact with their US counterparts.

“The dialogue will continue, but we are ready to respond,” said Canadian Defense Minister Bill Blair in Ottawa while entering a special meeting of the cabinet on relations between the United States and Canada. “There are still discussions that take place.”

Shortly after Blair spoke, Trudeau said that Canada would put 25% tariffs against the $ 155 billion Canadians ($ 107 billion of US goods) of US goods, starting with tariffs on Canadian goods ($ 21 billion) of US goods.

“Our tariffs will remain in place until the commercial action of the United States is withdrawn, and if US tariffs do not stop, we are in active and continuous discussions with provinces and territories to follow several non -tariff measures,” Trudeau said.

To solve the tariffs that are imposed on Tuesday, the White House would like to see a fall in the convulsions of the fentanyl within the United States, not only on the borders of the north and south. Administration officials say that Fentanyl seizures last month everywhere, from Louisiana to New Jersey, had links with foreign posters.

Damon Pike, Leader of Technical Practice for Customs and Trade Services in the BDO Tax and Consulting Signature, suggested that how other countries respond to tariffs with their own import taxes could increase tensions and possibly increase economic pain points.

“Canada has its list list,” said Pike. “The EU has its list list. It will be Tit for Tat. ”

The Trump administration has suggested that inflation will not be as bad as economists say, saying that tariffs give a reason for foreign companies to open factories in the United States. On Monday, Trump announced that the Taiwan semiconductor manufacturing company, the computer chips manufacturer, would be Invest $ 100 billion In domestic production.

Even so, you can take time to distributed factories all over the world and train workers with the skills they need.

Greg Ahearn, president and CEO of the toys association, said that 20% tariffs on Chinese products will be “paralyzing” for the toy industry, since almost 80% of toys sold in the United States are made in China.

“There is a sophistication of manufacturing, of the tools,” he said. “There are many crafts that are part of these toys that many people do not understand … facial paint, facial masks, hair fabric, hair braided, cutting and sewing so that they look so that it looks like this. All that are very high hands, qualified labor that has passed through generations in the supply chain that exists with China.”

For a president who has promised fast results, Ahearn added a precautionary note about the speed with which the United States factories could match their Chinese rivals.

“That can’t be replicated during the night,” he said.

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Gillies reported from Toronto. The writers of Associated Press Anne D’Onnocezio in New York and Lisa Mascaro in Washington contributed to this report.