Commerce Secretary Howard Lutnick announced reintroduced tariffs on Mexico and Canada, which President Trump will finalize. Economists warn of price increases on essential goods due to these tariffs, affecting consumers and businesses. Treasury Secretary Scott Bessent discussed appointing an ‘affordability czar’ to alleviate inflationary pressures, asserting a positive outlook despite warnings from economic analyses regarding previous tariffs’ impacts.
Commerce Secretary Howard Lutnick announced expectations for tariff implementations on imports from Canada and Mexico, effective Tuesday. The specifics of these tariffs will be determined by President Donald Trump and his team. The proposed tariffs include a 25% duty on most imports from Mexico and Canada, as well as a 10% tariff on energy products and certain Chinese goods. A previous month-long delay on tariffs for these nations is set to conclude soon.
Economists predict that the introduction of tariffs may result in increased prices for consumer goods, including electronics, groceries, and vehicles. The move could adversely affect American consumers and businesses already grappling with inflation concerns. Despite recent declines in inflation rates, the long-term impact is still causing unease among economic stakeholders.
During his interview on CBS, Treasury Secretary Scott Bessent emphasized Mexico’s willingness to match the proposed U.S. tariffs on Chinese goods. If Canada follows suit, Bessent sees it as a promising development. He conveyed the urgency of the situation, mentioning that tariff implementations might occur as soon as Tuesday.
Bessent highlighted the Treasury Department’s plan to appoint an “affordability czar” tasked with addressing inflationary pressures. This individual will identify critical areas where the administration can assist working-class Americans, along with suggestions for creating an “affordability council.” He assured that price increases from tariffs during Trump’s first term did not occur as feared, though data suggests otherwise.
He stated, “It’s a holistic approach. There will be tariffs, there will be cuts in regulation, there will be cheaper energy. I’m expecting inflation to continue dropping over the year.” Bessent’s stance presents optimism regarding inflation trends, despite the potential negative implications of tariffs on consumer prices.
The impending tariffs on goods from Canada and Mexico represent a significant economic strategy by the Trump administration, potentially affecting various consumer goods. Treasury Secretary Scott Bessent’s plan to establish an ‘affordability czar’ signifies an effort to combat inflation and support working-class Americans. Although he argues against the adverse effects of past tariffs, economic data presents a contrasting narrative of increased costs resulting from such policies. The ongoing developments warrant close monitoring as President Trump finalizes tariff specifics.
Original Source: www.cnn.com
