Commerce Secretary Lutnick announced looming tariffs on Canada and Mexico, with specifics pending President Trump’s decision. A new affordability czar will be appointed by Treasury Secretary Bessent to help combat inflation, while past tariffs have shown mixed effects on prices. Economists warn that the new tariffs could increase costs for American consumers on various goods.
Commerce Secretary Howard Lutnick announced that the U.S. expects to impose tariffs on both Canada and Mexico on Tuesday, as President Trump is set to finalize the details of these tariffs. Lutnick indicated that the situation remains fluid, with negotiations still in progress regarding the specific levels of tariffs applied to these countries, which are anticipated to impact various consumer goods.
Trump’s initial proposal from February included a 25% tariff on imports from Mexico and most products from Canada, with energy products facing a 10% tariff. Additionally, a 10% tariff on Chinese goods was also introduced. Although tariffs on Canada and Mexico were delayed earlier, Trump initiated a new 10% tariff across the board on Chinese goods.
Economists predict that the tariffs on the top three trading partners of the U.S. will raise prices on a wide range of products, including electronics, groceries, vehicles, and shoes. This price increase could affect American consumers and businesses, compounding existing inflationary pressures despite recent declines in inflation rates.
Treasury Secretary Scott Bessent mentioned on CBS News that Mexico has expressed willingness to implement similar tariffs on Chinese products if Canada agrees as well. He stated that this response could commence by Tuesday or after the U.S. tariff implementation, emphasizing a collaborative international stance on tariffs.
To combat inflationary challenges, Bessent announced the introduction of an “affordability czar,” tasked with identifying key areas where the administration can alleviate financial pressures on working-class Americans. This position aims to focus on proactive measures to enhance affordability across various sectors of the economy.
Despite concerns over rising prices, Bessent reassured that past tariffs did not significantly influence pricing during Trump’s first term. However, a report from a trade coalition noted that U.S. businesses incurred $46 billion more in tariffs compared to a scenario without the imposition of Trump’s tariffs. Bessent emphasized a multi-faceted approach, including tariffs, regulatory cuts, and initiatives for lowering energy costs, predicting a continued drop in inflation rates throughout the year.
In summary, the U.S. is set to impose tariffs on Canada and Mexico, with the potential for reciprocal action from these nations. The introduction of an affordability czar is intended to address inflationary pressures on American households. While historical tariff impacts raise concerns, the administration remains optimistic about the long-term effects of these economic policies on inflation and consumer prices.
Original Source: www.cnn.com
