Trump says 25% tariffs for Mexican and Canadian imports will start on Tuesday

Washington (AP) – President Donald Trump On Monday there was 25% taxes on imports from Mexico and Canada on Tuesday and the fears of a North American trade war had triggered, which already showed signs that inflation and growth were hindered.

“Tomorrow – tariff 25% on Canada and 25% on Mexico. And that will begin, ”said Trump reporters in the Roosevelt room. “You have to have a tariff.”

Trump said the tariffs are supposed to force the two US neighbors to strengthen their fight against the fentanyl trade and stop illegal immigration. But Trump has also pointed out that he also eliminates the trade weights of America and would like to urge more factories to move to the United States.

His comments quickly rattled the US stock marketWith the S&P 500 index 2% in retail on Monday afternoon. It is a sign of the political and economic risks that Trump in view of the possibility of higher inflation and the possible death of a decades of trading partnership with Mexico and Canada, since the tariffs would come into force on Tuesday at 12:01 p.m.

However, the Trump government is still confident that tariffs are the best choice to increase the US production and attract foreign investments. Minister of Commerce Howard Lutnick said the Computer chip maker TSMC had expanded its investments in the USA due to the possibility of separate 25% tariffs.

In February, Trump won a 10% tariff on imports from China. On Monday, he again emphasized that the price on Tuesday would double to 20%.

Trump delivered a one -month delay in February because both Mexico and Canada promised concessions. But Trump said on Monday that “there is no space for Mexico or for Canada” to avoid the steep new tariffs, which also control Canadian energy products such as oil and electricity at a lower interest rate of 10%.

“When Trump imposes tariffs, we are ready,” said Canadian Foreign Minister Mélanie Joly. “We are ready with tariffs worth 155 billion US dollars and we are ready with the first tariff's first tranche, which is $ 30 billion.”

Joly said Canada had a very strong border plan and explained this to the Trump government officials last week. She said the diplomatic efforts continue. She spoke after Trump made his comments on Tuesday.

The Mexican President Claudia Sheinbaum was in Monday and was waiting to see what Trump would say.

“It is a decision that depends on the United States' government on the United States President,” said Sheinbaum before Trump's explanation. “Whatever his decision is, we will make our decisions and there is a plan, there is unity in Mexico.”

Both countries have tried to show measures in response to Trump's concerns. Mexico sent 10,000 troops of the National Guard to their common border to take action against drug trafficking and illegal immigration. Canada called a fentanyl tsar, although the smuggling of the drug from Canada in the United States seems to be relatively modest.

On Sunday it remained unclear which election Trump would make at collective bargaining prices. Lutnick told Fox News Channel “Sunday morning -futures” that the decision was “fluent”.

“He is thinking about how exactly he wants to play with Mexico and Canada,” said Lutnick. “And that's a flowing situation. There will be tariffs in Mexico and Canada on Tuesday. Exactly what they are, we will leave the president and his team to negotiate. “

Finance Minister Scott Bessent said that Mexico had also offered to provide 20% taxes on all imports from China as part of the talks with the United States.

Bessent announced CBS News on Sunday that China would “eat” the costs for the tariffs instead of passing them on to the US companies and consumers who import their products in the form of higher prices.

However, companies from Ford to Walmart have warned of the negative effects that could achieve tariffs for their business. Similarly, several analyzes of the Peterson Institute for International Economics and the Yale University Budget Labor indicate that an average family could be exposed to more than 1,000 US dollars.

“It will affect companies that effectively perform their supply chains and their ability to carry out their businesses effectively,” said Eswar Prasad, economist at Cornell University. “There will be inflationary effects that will have disturbing effects.”

Democratically criticized the announced tariffs quickly because it worsened inflation and alienated allies.

The democratic chairman of the Senate, Chuck Schumer of New York, said that the voters in the elections of the past year were primarily annoyed by inflation and “now Donald Trump makes it worse.”

Senator Amy Klobuchar, D-Minn, predicted that the costs for fertilizers for farmers in her state will increase.

“This is a crazy way to deal with our allies, right? He literally applies to Russia at the same time when he sets Canadian goods 25% tariff, ”she said.

Trump also plans to organize “mutual” tariffs in April, which would correspond to the sentence calculated by other countries, including subsidies and accused by these countries.

The US President has already announced the removal of exceptions from his tariffs for steel and aluminum for 2018 as well as tariffs for cars, computer chips, copper and pharmaceuticals.

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The AP economist Christopher Rugaber and the AP author Kevin Freking contributed to this report.