Trump Imposes Tariffs on Canada, Mexico, and China, Escalating Trade War

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President Donald Trump has announced that tariffs on Canadian and Mexican imports will move forward on March 4, and that he will add an additional 10% levy on China, escalating the stakes of his trade battle that has rattled Wall Street and injected an air of uncertainty during his presidency. The tariffs are a response to what Trump calls "unacceptable levels" of drugs coming into the US from Canada and Mexico, and supplied by China. Trump's comments appeared to clarify remarks he made earlier, during which he suggested the tariffs on Mexico and China would begin in April, and his latest post reiterates that the levies are scheduled to be implemented in the coming days.

The tariffs have weighed down public sentiment, with consumers increasingly seeing that coming tariffs could lead to higher prices, as suppliers pass on the cost of the levies to American shoppers. Two recent consumer sentiment surveys showed a souring outlook, and Wall Street has pulled back, delivering a batch of down days, and prompting questions of a potential market correction and slowing growth. Trump's style of negotiating, in which the threat of tariffs are used to extract policy concessions, has also added to global uncertainty. The duties were originally scheduled to take effect earlier, but Trump agreed to a monthlong delay after the leaders of Mexico and Canada committed to stronger security measures at the US border.

The run-up to next week's tariff execution date will likely deliver another dose of volatility to the market. Trump has signaled his trade battle won't be confined to North American trading partners, and has threatened new tariffs on the European Union, describing the bloc as an adversary to the US. The impact of tariffs, if they go into effect, is expected to be felt more in the Canadian and Mexican economies, but analysts have warned that the threat of tariffs, even if they never go into effect, is still likely to have a chilling effect on investment, including in the US. China has already responded to the first round of tariffs from the US with its own tariffs on US products, including coal and agricultural machinery.

Here is a list of key points related to the tariffs: * The tariffs on Canadian and Mexican imports are scheduled to take effect on March 4 * The US will add an additional 10% levy on China * The tariffs are a response to unacceptable levels of drugs coming into the US from Canada and Mexico, and supplied by China * The duties were originally scheduled to take effect earlier, but Trump agreed to a monthlong delay after the leaders of Mexico and Canada committed to stronger security measures at the US border * Trump has threatened new tariffs on the European Union, describing the bloc as an adversary to the US * The impact of tariffs, if they go into effect, is expected to be felt more in the Canadian and Mexican economies * Analysts have warned that the threat of tariffs, even if they never go into effect, is still likely to have a chilling effect on investment, including in the US.

Trump's trade moves have also added to jitters on financial markets, despite significant uncertainty about whether Trump is prepared to carry out his threats. The three major stock indexes in the US were little changed on Thursday. Economists have warned that the tariffs could lead to higher prices in the US on everything from iPhones to avocados, and recent surveys of consumer sentiment suggest concerns about the measures have hit consumer confidence and contributed to worries about living costs. Trump has dismissed fears about damage to the American economy, saying "We are the pot of gold. We are the one that everybody wants."