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Trump to impose 25% tariffs on Mexico and Canada starting February 1
Posted on January 21, 2025 |
Trump’s administration will introduce 25% tariffs on Mexico and Canada starting February 1, bringing major changes to North American trade.
Mexico and Canada are key U.S. trade partners, with the U.S. importing $475 billion in goods from Mexico and $418 billion from Canada last year.
The U.S. exported $354 billion to Canada and $322 billion to Mexico last year, making up about a third of total U.S. exports.
The tariffs could prompt Mexico and Canada to respond with their own tariffs, which might harm American businesses.
American companies will pay the tariffs on goods from Mexico and Canada and are likely to pass the added costs to consumers through higher prices.
The tariffs will make imported goods like electronics, toys, sporting goods, transportation equipment, and chemicals more expensive.
Americans already dealing with inflation will face higher prices on essentials like food, shoes, and toys because of the tariffs.
Supporters of the tariffs say they will strengthen the U.S. position globally and could benefit consumers in the long term.