WASHINGTON — US President Donald Trump’s tariff hikes on Canada, Mexico and
China went into effect Saturday evening with an announcement from the White
House marking the start of a trade war that is expected to spread to other
countries.
The Trump administration has levied an additional tariff of
25 per cent on imports from Canada and Mexico and 10 per cent on those from
China. Oil imports from Canada will, however, be subject to a lower levy of 10
per cent.
The inflow of “Illegal aliens and drugs, including deadly
fentanyl, constitutes a national emergency”, the White House said in a
factsheet detailing and explaining the tariff hikes. “President Trump is taking
bold action to hold Mexico, Canada, and China accountable to their promises of halting
illegal immigration and stopping poisonous fentanyl and other drugs from
flowing into our country,” it added.
This is expected to be just the first salvo in President
Trump’s promise to use tariffs to address trade and non-trade issues with key
trading partners. He has plans of announcing tariff hikes on computer chips
Sector-wise hikes on computer chips, pharmaceuticals, steel, aluminium, copper,
oil and gas imports later this month, with the EU in his crosshairs.
“The orders make clear that the flow of contraband drugs
like fentanyl to the United States, through illicit distribution networks, has
created a national emergency, including a public health crisis,” the White
House fact sheet said.
“Chinese officials have failed to take the actions necessary
to stem the flow of precursor chemicals to known criminal cartels and shut down
money laundering by transnational criminal organisations.”
The White House went on to castigate the Mexican government
for working in cahoots with the Mexican cartels that are bringing these drugs
into the US. “The Mexican drug trafficking organizations have an intolerable
alliance with the government of Mexico,” it said, adding, “The government of
Mexico has afforded safe havens for the cartels to engage in the manufacturing
and transportation of dangerous narcotics, which collectively have led to the
overdose deaths of hundreds of thousands of American victims”
These cartels are present also in Canada, the White House
said. “A recent study recognised Canada's heightened domestic production of
fentanyl, and its growing footprint within international narcotics
distribution,” the factsheet added.
