The United States has proceeded to impose a 25 percent tariff on goods from Mexico and Canada, and an additional 10 percent on goods from China. A one-month exception has been made for automobiles entering the United States through the United States-Mexico-Canada Agreement.
The tariffs were implemented under the International Emergency Economic Powers Act to combat the threat to U.S. national security posed by drug trafficking, including the flow of fentanyl into the United States.
Speaking before a joint session of Congress, President Donald Trump said of Mexico and Canada, “They have allowed fentanyl to come into our country at levels never seen before:”
“Killing hundreds of thousands of our citizens. And many very young and beautiful people, destroying families. We pay subsidies to Canada and to Mexico of hundreds of billions of dollars, and the United States will not be doing that any longer.”
In general, President Trump believes that tariffs are a tool that has been used unfairly by many countries against the United States, and he underscored his commitment to level the playing field.
“[I]t’s our turn to start using them against those other countries. On average. the European Union, China, Brazil, India, Mexico and Canada, have you heard of them, and countless other nation charge us tremendously higher tariffs than we charge them.”
That will end on April 2, said President Trump, when the United States will start imposing reciprocal tariffs:
“And whatever they tariff us, other countries, we will tariff them. That’s reciprocal, back and forth. Whatever they tax us, we will tax them. ... We have been ripped off for decades by nearly every country on earth. And we will not let that happen any longer.”
“We just want to protect our businesses and our people,” said President Trump. He noted that to avoid all tariffs companies can make their products in America, and many, like Apple and the Taiwan Semiconductor Manufacturing Company, have announced plans to build facilities in the United States.
After telling the story of a man who worked at the same American steel plant for 27 years, raising seven children and providing a home to over 40 foster children, President Trump said, “Tariffs are not just about protecting American jobs. They’re about protecting the soul of our country. Tariffs are about making America rich again and making America great again. And it’s happening, and it will happen rather quickly. There’ll be a little disturbance, but we’re OK with that.”
