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Concerns grow as Trump pledges to impose tariffs on Canada, Mexico
As President-elect Donald Trump prepares to take office, there are new concerns that a trade war might be on the way between the U.S. and its two neighbors. Trump says he plans to slap a 25% tariff on both Canada and Mexico when he takes office in January.
WASHINGTON - As President-elect Donald Trump prepares to take office, there are new concerns that a trade war might be on the way between the U.S. and its two neighbors.
Trump says he plans to slap a 25% tariff on both Canada and Mexico when he takes office in January.
Tariffs are essentially taxes on goods that are imported into the U.S. So for example if you buy $100 worth of goods from Mexico, a 25% tariff would add $25 to the cost of that item.
In a social media post, Trump writes he’ll "charge Mexico and Canada a 25% tariff on all products coming into the United States," telling both countries to tighten their borders.
This move has sparked concerns of a tariff war. In the October presidential debate, Trump said tariffs would level the playing field against rivals like China.
"I charged. I was the only president ever. China was paying us hundreds of billions of dollars and so were other countries," Trump said during that Oct. 10 debate.
But Will Mcbride of the Tax Foundation tells FOX 5 that its consumers who may foot the bill.
"In the end really just no matter how you look at it it amounts to a hit for U.S. consumers," McBride said.
The president of Mexico says her country could retaliate with tariffs of their own. Mexico is a major importer of produce, pharmaceuticals and car parts.
Canadian Prime Minister Justin Trudeau says he talked to Trump on the phone. Canada is a big energy supplier and China ships in electronics.
FOX 5 heard concerns from folks about a possible trade war from consumers including one woman from Canada.
"Who is going to PAY for those tariffs? We are," one D.C. resident told FOX 5.
"I think it’s going to hurt things! We’re getting away from free trade that marks us as a country," said another.
In a statement to FOX 5, Virginia Sen. Tim Kaine wrote that he was alarmed by what he described as a dangerous plan.
Kaine claims increasing tariffs on Canada and Mexico could cost Virginia families up to $2,000 a year.