By james art 
By Akayla Gardner and Josh Wingrov | Bloomberg
President Donald Trump said he would follow his threat to impose 25% of Canada and Mexico’s import tariffs on February 1, citing the flow of fentanyl and major commercial deficits as the reasons for his decision.
“We will announce the tariffs for Canada and Mexico for a number of reasons,” Trump told reporters on Thursday in the Oval Cabinet while signing executive actions in response to a deadly collision of the aircraft.
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“The number one is the people who have poured into our country so terribly and so much. Number two are the fentanyl medicines and everything else that has entered the country. The number three is the huge subsidies we give to Canada and Mexico in the form of a deficit, “he said.
Trump added that tariffs “may or may not increase over time”.
The largest California Construction Commerce Association has warned that new tariffs will complicate efforts to recover from wild fires in Los Angeles County.
“The new tariffs are threatening to add significant costs to the construction of housing and to complicate the recovery after devastating fires in California,” the California Association for the Construction Industry in LinkedIn has been announced after Trump’s announcement.
Trump also said that he would decide immediately after tonight whether the tariffs would be applied to the import of Canadian oil, a decision that would depend on the price of oil.
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“We don’t need the products they have. We have all the oil you need. We have all the trees you need, “Trump added, referring to a major import from Canada.
West Texas’s intermediate futures climbed over $ 73 a barrel after the comments. The dollar rose to a daily peak and the Canadian moons descended.
Trump’s move was closely from the markets, as well as the global business and political leaders who have considered his words and actions for any indications of whether the US president will make his threats on a taxi or use them as a starting point for trade talks.
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The tariffs against the two countries, which are major trading partners and export markets for the United States, threaten to have dramatic economic consequences and potentially launching a trade war by undermining the defense of the free trade agreement in the US and Mexico-Canada.
Both Canada and Mexico promised to respond to any commercial levies, including potentially retaliatory rates, even when the nations sought to assure the United States that they were dealing with border concerns in an attempt to defuse the conflict.
In the first 11 months of 2024, trade in the United States with Canada amounts to $ 699 billion and $ 776 billion with Mexico. And the degree of tariffs that Trump will accept can have an exceptional impact on specific industries, such as the automotive industry and the energy sector. Shares of US Automobile Manufacturers
Ford Motor Co. and General Motors Co. have become negative on the message, wiping off more profits.
Trump also promises sectoral tariffs, such as pharmaceuticals, semiconductors, steel, aluminum and copper, which can be widely used for many countries, including Canada and Mexico.
Trump also paid 10% tariffs against China, which he accused of being able to observe promises to prevent fentanyl and chemicals used to turn the deadly drugs to enter the United States. Trump ordered his administration to investigate whether China had complied with a trade deal reached in its first term, laying the basis of rates against the world’s second largest economy.
The US President is a believer in the tariffs, saying they will force a renaissance in domestic production, although industrial groups warn that it will raise supply chains and threaten existing factories by increasing the cost of starting materials.
He welcomes tariffs as a source of revenue, as legislators move to renew and expand the leaking tax cuts and approve of many other loans and benefits that the president has promised along the campaign path. Trump wants to reduce the corporate rate to 15% for companies that produce goods in the United States compared to the current 21% rate.
News Group’s writer of South California Pat Mayo has contributed to this report.
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