In a move that has raised concerns among businesses and officials in Canada, Mexico, and China, President Trump is set to impose tariffs of 25% on goods from the two North American neighbors and 10% on Chinese products. This decision is driven by claims that these countries are enabling drug trafficking and migration into the U.S. Despite fears of inflation and potential economic backlash for U.S. consumers, Trump remains adamant about proceeding with the tariffs, which could elevate household costs significantly according to new studies. The lack of clear communication has created widespread uncertainty in the markets.
Mr. Trump insisted that the tariffs would not fuel inflation and suggested that he would move ahead with them regardless of any last-minute concessions from the other nations.
U.S. stock markets closed lower on Friday amid anxiety among investors about the fallout from the tariffs, creating even more uncertainty for global businesses.
Democrats were poised on Saturday to point to the tariffs as an early example of Mr. Trump's mismanagement of the economy, arguing that he was already taking steps that would raise prices on consumers.
A new analysis from the Budget Lab of Yale estimated that the proposed tariffs could raise annual costs on households by roughly $1,300.
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