ORLANDO, Fla. — President Donald Trump has signed a new round of executive orders. This time, he is imposing new tariffs on products bought from the country’s largest trading partners: Canada, Mexico, and China.
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A tariff is a fee that American companies pay to import goods from other countries. The president says these fees will fight illegal immigration and encourage companies to buy and sell within the U.S
However, experts say the efforts could backfire, and the countries are reacting.
“Geography has made us neighbors. History has made us friends; economics has made us partners, and necessity has made us allies,” said Canadian Prime Minister Justin Trudeau.
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Trudeau referred to his country’s long-standing partnership with the U.S. moments after President Donald Trump announced new tariffs on Canadian goods.
“It is also the time to choose Canada,” said Trudeau, asking Canadians to continue buying products from their country.
“There are many ways for you to do your part. It might mean checking the labels at the supermarket and picking Canadian-made products. It might mean opting for Canadian rye over Kentucky bourbon or forgoing Florida orange juice altogether.”
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Canada and Mexico will now face 25% tariffs across the board—except for Canadian oil, which will only face 10%. China will also be facing 10% tariffs.
The president blames the countries for illegal immigration and drug trafficking but acknowledged there could be repercussions. “There could be some temporary short-term disruption, and people will understand that,” the President said on Saturday.
According to the nonprofit Tax Foundation, American families could pay as much as $830 more yearly because of those added fees. That’s because tariffs will ultimately drive up the prices of fresh produce, alcohol, clothes, electronics, and cars.
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The Tax Foundation is also warning about the possible pain at the pump—with gas prices going up by as much as 70 cents per gallon. The President is also promising even more tariffs soon.
“We’re going to put a lot of tariffs on steel. We already have tariffs on steel, and we’ve saved our steel industry, but that was relatively small compared to what it’ll be,” the President said. “It’ll mean that it’ll be a great boost for our steel industry.”
Canada has announced it will enforce 25% tariffs on American products in retaliation. China and Mexico have not officially announced, although Mexico has said it is considering its options. The new tariffs will go into effect on February 4th.
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