Trump starts trade war as he slaps steep tariffs on imports from Canada & Mexico – but insists it’s ‘worth the price’
DONALD Trump has started a trade war after he slapped steep tariffs on imports from Canada and Mexico.
The newly-inaugurated president believes the taxes are "worth the price" to stopping the manufacture and import of the deadly drug fentanyl and ending the "RIPOFF OF AMERICA".
But prices of fruit like avocados and tomatoes and manufactured products like cars or computers are set to be more expensive for Americans.
A trade showdown could cost families $1,000 (USD) and slow down general growth if prices spike - but the Republican appears ready to risk it with the taxes kicking in Tuesday.
Trump slammed those opposing the tariffs saying the US was no longer going to be the "stupid country" that was subsidizing others.
He said his tariffs could bring some pain to the economy, but that is the "PRICE THAT MUST BE PAID" to end trade deficits with Canada, Mexico and China.
In a post on TruthSocial on Sunday, he said: "MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!!
Trump has slapped a 25 per cent tariff on all imports from Canada and Mexico and add another 10 per cent tariff on to Chinese trade.
Energy, like oil and natural gas, imported from Canada was also only hit with a 10 per cent tariff.
But it could risk a trade war with America's closest neighbors and largest trading partners as Canada has already responded.
Canadian Prime Minister Justin Trudeau said he would match 25 per cent tariffs on up to $155 billion in US imports, including alcohol and fruit.
Trudeau delivered the announcement in a somber tone, channelling the betrayal that many Canadians are feeling.
He reminded Americans that Canadian troops fought alongside them in Afghanistan and helped respond to myriad crises from wildfires in California to Hurricane Katrina.
Trudeau said: "We were always there standing with you, grieving with you, the American people.
";It is going to have real consequences for people, for workers on both sides of our border. We dont want to be here.
"We didn't ask for this, but we will not back down in standing up both for Canadians and for the incredible successful relationship between Canada and the United States."
Mexican president Claudia Sheinbaum slammed Trump for suggesting "the Mexican government has alliances with criminal organizations".
She said Trump should instead "fight the sale of drugs on the streets of their major cities, which they don't do".
The imposition of tariffs could also see an inflationary hit to prices just after inflation had been controlled by the Federal Reserve.
China's government pledged to take America to the World Trade Organisation - but is yet to announce retaliatory tariffs.
Trump is now preparing more tariffs and is set to go after imported computer chips, steel, oil and natural gas, as well as copper, pharmaceutical drugs and imports from the European Union.
Trump has attacked America's allies in the opening weeks of his presidency as he carries out his America First agenda.
The president slapped tariffs on Colombia after the country refused to take back migrants who had illegally entered the US.
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Just two hours after Trump announced a 25 per cent tariff and threatened a massive 50 per cent tariff, Bogota did a U-turn and agreed to accept its own people back.
Defiant Don later posted a computer-generated image of him standing beside a sign reading FAFO - which usually stands for "f**k around, find out".
Trump's Done List
DONALD Trump has taken office and hit the ground running as he looks to make his second administration a blazing success.
Already, he has renamed the Gulf of Mexico to the Gulf of America and renamed Mount McKinley back from is indigenous name Denali.
Trump declared an official national emergency at the US-Mexico border after he took office.
He can now use federal funding to build a wall along the boundary without the permission of Congress.
He also signed a directive to end birthright citizenship - when a person born on US soil is given American citizenship.
Protected by the Constitution - this order is likely to come up against hefty legal challenges during his term.
Trump also signed an order to designate Mexican drug cartels and certain gangs from El Salvador or Venezuela as foreign terrorist organisations.
This could give his government more powers to go after the criminal organisations with military strikes or to forcefully remove their members from the US.
Trump also withdrew from the Paris Climate Agreement - just as he did at the beginning of his first term.
Trump has also declassified secret documents with information on the assassinations of JFK, RFK, and Martin Luther King Jr.