Reuters reported that President Trump on 1.2 signed the law on taxpayers on Canada and Mexico goods, 10% on Chinese goods. Particularly, energy products from Canada have 10% taxes while the same items from Mexico are subject to 25% tax.
The tax exemption for shipments worth less than 800 USD for Canada is also canceled. The new tax will be collected from 4.2 but the goods are taken to the US to the US before 1.2 will not be taxed.
Mr. Trump taxed 25% of Canada, Mexico, Prime Minister Trudeau said he would ‘react strongly’
The new tax rate will be removed if the national emergency in the US for addictive substances Fentanyl and illegal immigrants end.
Trump accused China of bringing addictive drugs Fentanyl and related substances into the US through Canada and Mexico. He also criticized illegal immigration at the US border with two neighboring countries, mainly Mexico.
President Donald Trump signed a executive order at the White House on January 30
Mr. Trump’s move will likely encounter the response of these countries and start the trade war with the risk of wider economic interrupting to related countries. Moreover, experts predict the above tax rate can increase the price significant price of many common goods and influence US consumers.
Mr. Trump himself on January 31 acknowledged that the tax rate could cause temporary interruption but “will help the United States very rich and strong” and hope people understand, according to CNN.
Canada, Mexico and China are the three largest trading partners in the United States. Last year, Mexico exported to the US $ 467 billion in goods, followed by China with US $ 40 billion and Canada $ 377 billion. A total of 42% of US global import turnover.
The US also exports large amounts of goods to these countries. Last year, the US came to Canada the most, reaching 322 billion USD, followed by Mexico $ 309 billion and China 131 billion USD. A total of more than 40% of US global export turnover.
All three taxes have not reacted to President Trump’s move.
