“… Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada — America’s largest trading partners — except for a 10% rate on Canadian energy, including oil, natural gas and electricity. The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially
sabotage economic growth.
A senior administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize any disruptive increases on the price of gasoline or utilities. That’s a sign the White House understood as outside economists have warned that the import taxes if sustained could dramatically increase inflation, a possible problem for Trump as he promised to tame inflation after public unhappiness with price spikes under former President
Joe Biden.
… The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
… The White House said Trump’s order also includes a mechanism to escalate the rates if the countries retaliate against the U.S., as they have threatened. Both Canada and Mexico have plans, if needed, to impose their own tariffs in response. …”