Trump hits Canada, Mexico and China with steep new tariffs, stoking fears of a trade war
CBSN
The Trump administration on Saturday imposed 25% tariffs on imports from Canada and Mexico, while adding an additional 10% levy on goods from China. The salvo, which President Trump had threatened even before returning to power earlier this month, underlines his willingness to use trade policy even against some of the U.S.' largest economic allies.
According to the White House, the salvo is aimed at curbing the flow of undocumented immigrants and illicit drugs into the U.S.; spurring a resurgence in domestic manufacturing; and raising federal revenue.
Experts warn that the impact of the tariffs could affect the economies of Canada, Mexico and China — the nation's three biggest trading partners — as well as the U.S. itself. Canada's economy could shrink by 3.6%, while Mexico could take a 2% hit, according to Cornell University economics professor Wendong Zhang.
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