On Monday, February 3, President Donald Trump put a 30-day pause on the 25% tariffs he had imposed on Canada and Mexico after they threatened to participate in a trade war, which would mean imposing similar tariffs on the United States.
The trade war threat wasn’t the only reason for Trump’s pause as according to an article on AP News, “America’s two largest trading partners [Mexico and Canada] took steps to appease his concerns about border security and drug trafficking” (Boak, SÁNCHEZ, Gillies, Feb 3). Similarly, BBC stated that “both countries agreed to boost border security” after the president said the tariffs were necessary to “‘protect’ the country from the ‘major threat of illegal aliens and deadly drugs’” (Faguy, Feb 4).
He didn’t, however, pause the 10% tariff he imposed on China. In response, CNN reported that China announced a “15% tax on certain types of coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks” (McCarthy, Feb 4). are expected to go into effect on February 10. CNN quoted a statement released on February 4 by China’s commerce ministry in which they claimed, “The US practice seriously undermines the rules-based multilateral trading system, undermines the foundation of economic and trade cooperation between China and the United States, and disrupts the stability of the global industrial chain and supply chain” (McCarthy, Feb 4). In simpler terms, the Chinese government views the tariffs America imposed on them as a broken rule and believes it will cause the supply chain to become unpredictable.
As for what this will mean for you and your wallet, an article on NPR cited that, “The Tax Foundation estimates that the tariffs on China alone will add $172 to the tax burden per U.S. household” (Wamsley, Feb 5). Additionally, that same article says “if Americans don’t see an increase in the actual sticker price of an item, there is still pain being inflicted on the U.S. economy”(Wamsley, Feb 5). Even though the tariffs on Mexico and Canada are currently paused, there’s no predicting what will happen after the 30 days. If the tariffs are passed, expect to see an increase in the price of technology, footwear, toys, and fresh produce (Wamsley, Feb 5).
