US President Donald Trump has formally agreed to impose 25 percent tariffs on Canada and Mexico and 10 percent additional tariff on China. Import prices will rise as a result of the increase in tariffs, and consumers will pay the higher prices.

There are advantages and disadvantages. If imported goods are manufactured locally, it should boost the domestic market, generate jobs, and raise revenue collection. But it is too soon to predict how much cash flow will increase.

Canada has said that their counter plan is in progress. Canada is also going to impose 25 percent levies in response to the US tariffs of CAD 155 billion, or USD 106 billion, worth of imports from the United States.

It is anticipated that CAD 30 billion tariffs will go into effect on Tuesday, and CAD 125 billion over the next 21 days. Nearly 60% of Canada’s crude oil exports, or 4 million barrels per day, go to the US, which will raise the price of diesel.

And we will have to wait and watch how Mexico reacts. The economy minister has already been asked by the President to respond back to protect their country’s interests.

China’s foreign spokesperson has said “China firmly deplores and opposes this move and will take necessary countermeasures to defend its legitimate........

© Business Recorder