United News of Bangladesh

US President Donald Trump declared on Monday that a 25% tariff on imports from Mexico and Canada will take effect on Tuesday, raising fresh concerns about a potential North American trade war, which is already contributing to inflation and slowing economic growth. "Tomorrow – tariffs of 25% on Canada and 25% on Mexico. And that will commence," Trump stated to reporters in the Roosevelt Room. "They will have to pay a tariff," reports AP. Trump justified the tariffs as a means to pressure both neighbouring countries into intensifying efforts to combat fentanyl trafficking and curb illegal immigration. However, he has also expressed a broader goal of addressing trade imbalances within the Americas and encouraging more manufacturing operations to relocate to the United States. Asian stocks drop as Wall St falls on Trump’s tariffs His announcement caused immediate volatility in the U.S. stock market, with the S&P 500 dropping 2% by Monday afternoon. This reaction highlights the economic and political risks Trump is prepared to take, given the likelihood of rising inflation and the potential breakdown of a long-standing trade relationship with Canada and Mexico. The tariffs are scheduled to be enforced at 12:01 a.m. on Tuesday. Despite this, the Trump administration remains firm in its belief that tariffs will strengthen U.S. manufacturing and attract foreign investment. Commerce Secretary Howard Lutnick pointed to the expansion of the chipmaker TSMC’s investments in the U.S. as an example, attributing it to the possibility of separate 25% tariffs. In February, Trump had imposed a 10% tariff on Chinese imports, and on Monday, he reiterated that the rate would double to 20% starting Tuesday. A one-month reprieve was granted in February when both Mexico and Canada pledged concessions, but on Monday, Trump made it clear that there was "no room left for Mexico or Canada" to avoid the sharp tariff hikes. The tariffs will also apply to Canadian energy exports, including oil and electricity, albeit at a lower 10% rate. Canadian Prime Minister Justin Trudeau condemned Trump’s move, stating, "There is no justification for these tariffs." "Due to U.S. tariffs, Americans will end up paying more for groceries, petrol, and vehicles while potentially losing thousands of jobs," Trudeau warned. "These tariffs will disrupt a highly successful trade relationship and violate the very agreement President Trump himself negotiated during his previous term." Trudeau also announced retaliatory measures, stating that Canada will impose a 25% tariff on U.S. goods valued at 155 billion Canadian dollars over the next 21 days, with the first round—worth 30 billion Canadian dollars—set to begin just after midnight on Tuesday. Mexican President Claudia Sheinbaum had awaited Trump’s final decision on Monday before responding. "This is a decision that rests with the U.S. government and its president," Sheinbaum said ahead of Trump’s announcement. "Once the decision is made, we will act accordingly, and we have a plan in place. Mexico stands united." Both Canada and Mexico have taken steps to address Trump’s concerns. Mexico has deployed 10,000 National Guard troops to its border to tackle drug smuggling and illegal migration. Meanwhile, Canada has appointed a fentanyl czar, despite the relatively small scale of fentanyl trafficking from Canada into the U.S. Until Sunday, there remained uncertainty over Trump’s final decision on tariff rates. Lutnick mentioned on Fox News Channel’s "Sunday Morning Futures" that the situation was still "fluid." "He’s still weighing his options regarding Mexico and Canada," Lutnick said. "It’s a fluid situation. Tariffs will be implemented on Tuesday for both countries, but the specifics will be left to the president and his team to finalise." Trump halts Ukraine aid, pressures Zelenskyy for swift end to war Treasury Secretary Scott Bessent noted that Mexico had proposed a 20% tax on all Chinese imports as part of its negotiations with the U.S. In an interview with CBS News on Sunday, Bessent argued that China, rather than U.S. businesses and consumers, would "absorb" the cost of the tariffs, rather than passing them down in the form of price hikes. However, major corporations such as Ford and Walmart have voiced concerns about the tariffs' negative consequences for their operations. Studies from the Peterson Institute for International Economics and the Yale University Budget Lab estimate that the average American household could face price increases exceeding $1,000. "This will significantly disrupt businesses, particularly their supply chains and overall efficiency," warned Eswar Prasad, an economist at Cornell University. "The inflationary impact will be considerable and disruptive." Democrats were swift to criticise the tariff decision, arguing that it would worsen inflation and strain U.S. alliances. Senate Democratic Leader Chuck Schumer of New York pointed out that inflation was a top concern for voters in last year’s election, remarking, "Now Donald Trump is making it worse." Senator Amy Klobuchar, D-Minn., warned that fertiliser prices for farmers in her state would increase. "This is an absurd way to treat our allies," she said. "He’s extending a hand to Russia while simultaneously imposing a 25% tariff on Canadian goods. It makes no sense." Trump also plans to introduce what he terms "reciprocal" tariffs in April, which will match the rates imposed by other countries, including any subsidies or value-added taxes they charge. Additionally, he has announced the removal of exemptions from his 2018 tariffs on steel and aluminium, while also expanding tariffs to include autos, computer chips, copper, and pharmaceutical drugs.

President Donald Trump agreed on Monday to a 30-day suspension of his proposed tariffs on Mexico and Canada after both nations took steps to address his concerns regarding border security and drug trafficking, reports AP. This temporary halt follows days of heightened tensions that brought North America to the brink of a trade war, one that could have stifled economic growth, driven up prices, and strained two of the U.S.’s most vital trade relationships. Trump's trade war among allies triggers retaliation from Canada and Mexico “I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to determine if a final economic deal with Canada can be structured,” Trump stated on social media, adding, “FAIRNESS FOR ALL!” Canadian Prime Minister Justin Trudeau confirmed the pause in a post on X, stating that it would remain in place “while we work together.” He announced that Canada would appoint a fentanyl czar, designate Mexican cartels as terrorist organizations, and create a joint Canada-U.S. task force to combat organized crime, fentanyl trafficking, and money laundering. Similarly, the pause in tariffs against Mexico provides an opportunity for negotiations on drug smuggling and illegal immigration. However, the 10% tariff on Chinese imports remains set to take effect on Tuesday, with Trump planning a discussion with Chinese President Xi Jinping in the coming days. Trump's aid freeze shocks Syria camp housing IS-linked families Although fears of an imminent trade war have eased, uncertainty remains. While Canada and Mexico have secured a temporary reprieve, Trump could reinstate the tariffs at any time and is already preparing to impose levies on European imports. As a result, the global economy remains unsure whether a crisis has been averted or merely delayed. On Saturday, Trump had announced 25% tariffs on Mexican and Canadian imports, along with an additional 10% tariff on Canadian oil, natural gas, and electricity. Despite his frequent warnings, the decision still came as a shock to investors, lawmakers, businesses, and consumers. Economic analyses from the Tax Foundation, the Tax Policy Center, and the Peterson Institute for International Economics suggested that the tariffs could slow growth, reduce incomes, and raise prices. However, Trump, while also promising to control inflation, argued that tariffs were essential to curbing illegal immigration, halting fentanyl smuggling, and ensuring that other nations treat the U.S. with the respect he believes it deserves. Trump and Mexican President Claudia Sheinbaum agreed to the month-long tariff suspension after what Trump described as a “very friendly conversation” on social media. He expressed optimism about the upcoming negotiations. Leading the talks will be Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary nominee Howard Lutnick, and senior Mexican representatives. Sheinbaum stated that Mexico would reinforce its border with 10,000 National Guard troops, while the U.S. committed to addressing the flow of high-powered weapons into Mexico. A similar situation occurred in 2019 when Mexico avoided Trump-imposed tariffs by deploying 15,000 soldiers to its northern border. On Monday, the outlook for Canada appeared less promising until a last-minute agreement was reached. Americans could feel 'some pain' from trade war: Trump A senior Canadian official revealed that Canada was uncertain about avoiding tariffs as Mexico had, citing shifting demands from the Trump administration. Speaking anonymously due to the sensitive nature of the negotiations, the official indicated that the Canadian government felt less confident in securing a favourable outcome. When asked in the Oval Office on Monday what Canada could do to prevent tariffs, Trump responded, “I don’t know.” He even joked about making Canada the 51st U.S. state, continuing his often contentious rhetoric despite decades of close cooperation between the two nations, from World War II to joint efforts after the 9/11 attacks. Trump also hinted at additional tariffs against China, warning, “If we can’t make a deal with China, then the tariffs will be very, very substantial.” Financial markets, businesses, and consumers remained on edge as they braced for the potential economic impact of new tariffs. Stew Leonard Jr., CEO of the supermarket chain Stew Leonard’s, which operates in Connecticut, New York, and New Jersey, noted that his team was considering stocking up on Mexico’s Casamigos tequila before tariffs took effect and switching from Canadian to Norwegian salmon. Stock markets reacted with slight declines, reflecting cautious optimism that the tariffs could be short-lived. Trump himself inquired about market performance as reporters were leaving the Oval Office on Monday. The situation underscored the unpredictability of a president who has repeatedly expressed admiration for tariffs, even lamenting that the U.S. government shifted to income taxes as its primary revenue source in 1913. White House National Economic Council Director Kevin Hassett argued that labelling the situation a trade war was misleading, despite the risk of retaliatory measures and escalation. “Read the executive order—President Trump was absolutely, 100% clear that this is not a trade war,” Hassett said. “This is a drug war.” Despite this framing, Trump’s rhetoric has frequently suggested a broader concern about perceived trade imbalances and economic exploitation. On Sunday, he indicated that tariffs on European nations would be coming soon. By Monday afternoon, he appeared willing to continue leveraging tariff threats, citing the U.S. economy’s size as a bargaining tool. “Tariffs are very powerful, both economically and in getting everything else you want,” Trump told reporters. “Nobody can compete with us because we’re the pot of gold. But if we don’t keep winning and doing well, we won’t be the pot of gold.” Jaime Bricker, tourism director for Skagway, Alaska, highlighted the economic concerns among Canadian visitors, who are essential to her town’s economy. Speaking about a recent visit to Vancouver, she noted that many people, from cab drivers to wait staff, expressed anxiety over how exchange rates and potential tariffs might affect their ability to visit the U.S. “It seems to be a fluid situation, and it’s difficult to know just how impactful it will be without knowing for certain what could come in the days ahead,” she said.