Trump announces: Additional tariffs to take effect on March 4... He has increased the additional tariffs on China again

US President Donald Trump announced that the customs tariffs to be applied to Mexico and Canada will take effect on March 4. It was stated that an additional 10 percent tariff will also be applied to China on the same date. Trump announced the decision in a post on his social media account. The US President emphasized that the tariffs will be applied until sufficient steps are taken regarding border security.

Claiming that the flow of illegal drugs continues, Trump stated the following:

'Very high and unacceptable levels of drugs are coming into our country from Mexico and Canada. We cannot allow this situation to continue.'

According to a report by CNBC, White House National Economic Council Director Kevin Hassett said that the final decision regarding the tariffs would be made after a report to be released on April 1. However, according to Trump's statement, the tariffs will take effect in 4 days.

The 25 percent tariffs to be applied to Mexico and Canada had been suspended for one month on February 3. With the new decision, these taxes will come back into effect. Furthermore, it is planned to add another 10 percent tax to the existing 10 percent tariff applied to China. Thus, the total customs tariff applied to imports from China will rise to 20 percent.

TRUMP'S LEVERAGE: TARIFFS

According to the US press, the Trump administration uses tariffs both as a source of revenue and as a tool of pressure in trade disputes with other countries. Trump also ordered a 25 percent global customs tariff on steel and aluminum imports on March 12.

With a presidential memorandum signed on February 13, it is planned to impose reciprocal taxes on countries that apply tariffs to the US. In this context, policies such as value-added tax will also be considered as unfair trade practices.

Trump's statements caused a short-term fluctuation in the markets. Dow Jones Industrial Average futures experienced a slight decline following the announcement but recovered as the markets opened.

The re-implementation of the tariffs could initiate a new period of tension in the US's trade relations with North America and China.

News Source: 12punto