US President Donald Trump shut down hopes Monday of an eleventh-hour deal with Canada and Mexico to avert sweeping tariffs while signing an order to hike duties on China.
Trump had unveiled — and then paused — blanket tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to stop illegal immigration and drug trafficking.
The halt is due to expire Tuesday, and US stock markets tumbled after Trump told reporters Monday there was “no room left” for both countries to avoid fresh levies.
The White House also said Trump had inked an order to increase a previously imposed 10 per cent tariff on China to 20 per cent.
But sweeping levies, particularly on Canada and Mexico, are set to snarl supply chains for key sectors like automobiles and construction materials, risking a hike in consumer prices.
This could complicate Trump’s efforts to fulfil his campaign promises of lowering costs for households.
On Monday, Trump told reporters that tariffs of up to 25 per cent on Canada and Mexico were “all set.”
“What they’ll have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” he added.
In Ottawa, Canadian foreign minister Melanie Joly said Trump’s looming tariffs represent an “existential threat” to the country, with thousands of jobs at stake.
She added that if Trump went ahead, “we are ready with counter-tariffs.”
