WASHINGTON (AFP) – The United States (US) economy is set to experience some “disturbance” from tariffs, President Donald Trump said, as trade tensions flare after he imposed sweeping levies on Mexico, Canada and China.
Trump’s address to a joint session of Congress came after he pushed forth with tariff hikes on the three countries over illegal immigration and drug trafficking.
This drew a sharp rebuke from Canadian Prime Minister Justin Trudeau and retaliatory levies. China responded too with countermeasures, while Mexican President Claudia Sheinbaum similarly promised pushback.
“Tariffs are not just about protecting American jobs. They’re about protecting the soul of our country,” Trump said.
“There’ll be a little disturbance, but we’re okay with that. It won’t be much,” he added.
Earlier, a furious Trudeau accused Trump of trying to cause the collapse of Canada’s economy to make it easier for the US to annex his country.
Fears that the tariff spat is devolving into a brutal trade war sent global markets lower, with major Wall Street indexes tumbling.
Trump’s 25 per cent duties on Mexican and Canadian imports affect everything from avocados to the lumber crucial for building US homes, snarling supply chains for key sectors like automobiles. Canadian energy resources face a lower rate.
Multiple Canadian provinces have since banned the sale of US products, as part of a broad national retaliation.
Trump also inked an order to increase a previously imposed 10 per cent tariff on China to 20 per cent – piling atop existing levies on various Chinese goods.
Commerce Secretary Howard Lutnick however said that Trump could dial down hefty levies on Canada and Mexico this week, while maintaining pressure on China.
