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Donald Trump, Canada, Mexico and China, struck with highly declining definitions on Saturday, in a steps threatening to launch a new era of commercial wars between the United States and three of its largest commercial partners.
Trump issued an executive order applying an additional 25 percent tariff to all imports from Canada and Mexico, with the exception of Canadian oil and energy products, which will face a 10 percent tax. Canada is largely the largest foreign oil resource in the United States, as it represents about 60 percent of its raw imports.
Imports from China will face a 10 percent tariff, as well as the current US tariffs.
A White House official said that every matter contains “revenge clause … so that if any country chooses revenge in any way, the signal will be to take more measures regarding the increase in potential definitions.”
The President used the Economic Forces Act of International Emergency, an executive authority that allows him to respond to emergency situations through economic means, to apply fees without the need for Congress approval.
Trump's surprise move will open up to the hopes of countries that expect to follow a slower and more cautious approach in commercial policy after the Trump administration has ordered an accreditation of reviews in American trade relations on the opening day.
It also indicates the president's readiness to use the customs tariff to apply pressure on allies on issues ranging from migration to drug trafficking. Trump justified the definitions by complaining about what he says is the security of the boundary on the border with Mexico and Canada, on the pretext that both – alongside China – failed to do enough to stop the flow of deadly opioids to the United States.
In a session of questions and answers with correspondents on Friday afternoon, Trump also referred to the trade deficit of America with Canada, Mexico and China, describing his definition as purely economic and denying it as a negotiating tool.
Trump also admitted that the comprehensive customs tariffs against commercial partners may cause some “turmoil”, but he added: “The definitions will make us very rich and very strong.”
On Friday, Trump said he intends to impose customs duties on the imports of the European Union as well, but the Saturday's announcement did not include any measures related to the European Union.
Demiri Anastakis, a professor of business at the University of Toronto, said that the American definitions could be a shock to the painful system such as the roaming epidemic.
He said, “It is not necessary and very stupid.” “This takes a hammer sliding for a problem that is not present with the economy of North America, which was working well.”
Anastakis said that there will be immediate pain in the car trade, loss of jobs and potential stagnation in Canada.
This is a developing story …
