In a major joint address to Congress Monday night, a defiant President Trump declared that he is “just getting started” as the backlash to the new Administration’s tariffs against Canada and Mexico intensifies.
Trump gave this major speech on the day that he delivered a key campaign pledge, to impose sweeping taxes on the US’s closest neighbours.
“Tariffs are about making America rich again and making America great again,” said the US President.
“And it’s happening. And it will happen rather quickly. There’ll be a little disturbance, but we’re ok with that. It won’t be much.”
On Tuesday, the Trump Administration imposed a flat 25 per cent tariff on imports from Canada and Mexico, with Canadian energy products now taxed at 10 per cent.
An existing 10 per cent duty on Chinese imports is doubling to 20 per cent.
On Tuesday, Mexican President Claudia Sheinbaum announced retaliatory tariffs on US goods, declaring that there was “no motive or reason, nor justification that supports this decision”.
She said: “Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”
Canadian prime minister Justin Trudeau has slammed the tariffs as “a very dumb thing to do”, announcing retaliatory tariffs worth more than $100bn (£78.7bn) of American goods.
Trudeau himself is just days away from being replaced as Canada’s prime minister, after nearly ten years in the job – as the next Liberal Party leader, and Trudeau’s successor, is set to be announced on Sunday.
The tariffs have sparked financial turmoil, with European banking giant Deutsche Bank suggesting that the Dollar could lose its save haven status.
There is still uncertainty as to whether the UK will be hit with tariffs, though taxes on exports of steel and aluminium are already due for April – with the UK preparing to reciprocate.
Chancellor Rachel Reeves told MakeUK’s National Manufacturing Conference on Tuesday that the UK will be hit by the collateral damage from a Trump trade war, even if the UK itself is not slapped with tariffs.
However, she added that there is “every reason to be hopeful” about a trade deal with the US.