A prominent economic think tank, the Peterson Institute for International Economics, warned that Donald Trump’s plan to impose tariffs on Canada, Mexico, and China could result in American consumers paying an average of $1,200 more per year. The analysis found that the tariffs could lead to retaliation from foreign governments, resulting in higher import costs that would be passed on to American households. Trump’s recent announcement of imposing tariffs at 25 percent on most goods from Canada and Mexico, and a 10 percent increase on goods from China, is expected to cause a tax increase of more than $1,200 per year for the typical American household. The think tank warned that further waves of tariffs and retaliation could lead to even higher consumer costs, reduced economic growth, a shrinking export sector, and disruption of the supply chain.
Meanwhile, Commerce Secretary Howard Lutnick stated that Canada and Mexico have made progress in stemming the flow of migrants, but more action is needed to curb fentanyl trafficking. The Trump administration’s threat to impose tariffs on the two trading partners has raised concerns about potential economic damage. The future remains uncertain as both countries await news of the tariffs and potential last-minute reprieves. Additionally, tensions within the US Congress persist, with no deal in sight to avert a government shutdown ahead of the deadline on March 14. Republicans and Democrats are at odds over Trump’s actions and budget cuts, creating further uncertainty in Washington.
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