President Trump’s tariffs against China are now in place after they were announced at the weekend, whilst Canada and Mexico have managed to get theirs delayed by a month.
The move has sparked fears of a global trade war and concerns about tariffs potentially being imposed on the UK and EU.
So, what are tariffs and why has President Trump introduced them?
FactCheck takes a look.
What is a tariff, which countries is Donald Trump imposing them on and why?
Tariffs are taxes charged on goods imported from other countries, with companies that import goods from abroad paying these tariffs to the US government.
But economists have said that these additional costs are usually passed on to the consumer through higher prices.
Mr Trump has argued that imposing tariffs will help reduce illegal migration and the smuggling of the synthetic opioid fentanyl to the US.
According to the CDC’s National Center for Health Statistics, overdose deaths from synthetic opioids (primarily fentanyl) decreased in 2023 compared to 2022.
The US president said China’s government provides a “safe haven” for criminal organisations. While in Mexico, he claimed that drug traffickers and the country’s government “have an intolerable alliance” which impacts on national security.
The US president also said that Mexican drug cartels are operating in Canada.
A report from the Financial Transactions and Reports Analysis Centre of Canada said that “law enforcement reporting identifies the presence of fentanyl originating from Mexican organized crime groups in the Canadian drug supply”, and that “Canadian intelligence suggests that fentanyl is sometimes smuggled alongside cocaine and methamphetamine from Mexico to Canada in commercial motor vehicles”.
The report added that “the magnitude and nature of this criminal incursion into Canada is not fully understood”.
Mr Trump therefore imposed a 10 per cent charge on goods imported from China, which has just come into effect. China’s Ministry of Commerce has responded with a 15 per cent tariff on imports of US coal and liquefied natural gas products in retaliation, as well as a 10 per cent tariff on crude oil, agricultural machinery and large-displacement cars. Beijing has also announced an antitrust investigation into Google.
On 1 February, Mr Trump announced plans to introduce a 25 per cent tariff on goods shipped from Canada and Mexico, with both countries saying they would introduce their own tariffs in return.
But, following a call with Mexico’s president Claudia Sheinbaum, Mr Trump agreed to postpone the tariffs after she offered to send 10,000 of the country’s troops to its border with the US.
And after talks with the US president, Canada’s prime minister Justin Trudeau said it is implementing a $1.3bn border plan, will appoint a fentanyl policy adviser and list criminal drug organisations – known as drug cartels – as terrorists.
Will Donald Trump impose tariffs on the UK or EU?
The new tariffs have sparked fears of a global trade war and concerns that the US president will impose tariffs elsewhere.
Mr Trump said tariffs on goods from the EU will “definitely” happen, but suggested he thinks a deal can be “worked out” to avoid imposing tariffs on the UK.
When asked by the BBC on 3 February if he will target the UK with tariffs, Mr Trump said: “UK is out of line but I’m sure that one… I think that one can be worked out.”
The US president also said discussions with Keir Starmer have “been very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”
The Prime Minister’s official spokesman was asked if Sir Keir believes he can trust Mr Trump to keep his word.
“Yes, the Prime Minister has had a really constructive early set of conversations with President Trump, and looks forward to working with him to deepen our trade, investment, security and defence relationship,” he said.
(Image credit: Andrew Leyden/ZUMA Press Wire/Shutterstock)