Commerce Secretary Howard Lutnick announced impending tariffs on Canada and Mexico, with details to be confirmed by President Trump. Treasury Secretary Scott Bessent indicated the potential for reciprocal tariffs from these countries on China, and announced an initiative for an “affordability czar” to tackle inflation. Despite past concerns, Bessent believes current tariffs will not raise prices substantially as they did in previous years.
U.S. Commerce Secretary Howard Lutnick announced on Sunday that tariffs on Canada and Mexico are anticipated to be imposed on Tuesday, although the specific details will be determined by President Donald Trump. Lutnick stated, “There are going to be tariffs on Tuesday on Mexico and Canada,” emphasizing that negotiations will reveal the exact implementation.
Trump’s proposed tariffs initially included a 25% duty on imports from Mexico and most products from Canada, as well as a 10% tariff on energy goods from Canada, and a new 10% tariff on Chinese imports. While the imposition of tariffs on Canada and Mexico was delayed for a month, a 10% tariff on Chinese goods has already taken effect.
Analysts predict that these tariffs will increase the prices of various consumer goods, ranging from electronics to groceries, impacting both American consumers and businesses amid ongoing inflation concerns.
Treasury Secretary Scott Bessent, speaking on CBS News, mentioned that Mexico is prepared to reciprocate with tariffs on China, and Canada could potentially follow suit. He pointed out that such actions could be executed by Tuesday, adding, “or maybe the tariff wall goes up, and then we see what happens from there.”
Bessent announced the Treasury Department’s intention to appoint an “affordability czar” to combat inflationary challenges, asserting that this position would focus on areas significantly affecting working-class Americans. He also proposed the formation of an “affordability council” to assist with this initiative.
Despite concerns over rising costs, Bessent suggested that the American public need not be alarmed, asserting that tariffs previously did not noticeably affect prices during Trump’s initial administration. However, it was reported by the free-trade coalition Tariffs Hurt the Heartland that U.S. companies incurred an additional $46 billion in tariff costs under Trump’s tariffs.
Bessent concluded with expectations for a comprehensive strategy involving tariffs, regulatory cuts, and lowered energy costs, stating, “I’m expecting inflation to continue dropping over the year.”
In summary, U.S. officials are preparing to impose new tariffs on Canada and Mexico, as outlined by Commerce Secretary Howard Lutnick. These tariffs could escalate consumer prices, negatively impacting the economy. Treasury Secretary Scott Bessent plans to introduce an “affordability czar” to manage inflation and claims that previous tariffs did not considerably affect prices. While there is hope for price stability, the effect of increased tariffs remains a critical concern for businesses and consumers alike.
Original Source: www.cnn.com
