Trump threatens higher tariffs in China, Mexico and Canada from March 4th

Trump threatens higher tariffs in China, Mexico and Canada from March 4th

President Donald Trump announced on Thursday that from March 4, tariffs of 25 % will come into force on goods from Mexico and Canada. At the same time, he threatened to collect an additional inch of 10 % on Chinese imports from the same date.

Trump's reason for the tariffs

"Drugs continue to flow into our country from Mexico and Canada in very high and unacceptable quantities," Trump wrote in a contribution to Truth Social on Thursday morning. The president links the tariffs to the neighboring countries of the United States with illegal immigration and the inflow of Fentanyl.

political effects of the tariffs

"We cannot allow this evil that harm the USA. Therefore, the proposed tariffs that are to come into force on March 4," he said.

The tariffs of 25 % on products from Mexico and Canada had already been considered, but Trump had not previously announced that he wanted to raise an additional inch of 10 % to Chinese goods after the introduction of a first customs of 10 % this month.

market development according to Trump's announcement

The futures on the Dow Jones fell 90 points after Trump's statements after they had previously been up. However, the futures, which are connected to the S&P 500 and the Nasdaq 100

confusion about the timetable of the tariffs

Trump's contribution came after confusion that was made on Wednesday during his first cabinet meeting. When asked by a reporter about the time to get into force of the tariffs for Mexico and Canada, he replied with "April 2 for everything". This had many assumed that the tariffs are delayed beyond the 30-day break beforehand.

This is a developing story and is updated.