United States President Donald Trump confirmed 25% tariffs for products from Mexico and Canada, which are starting to be effective on Saturday, February 1.
Trump also mentioned that the US is in the process of applying tariffs to China, and said: “(Asian country) needs to stop sending fentanil (an opioid) to our country and kill our people.” According to the president, this will be the reason why China’s tariffs are implemented soon.
After the announcement of the measure, this Thursday, 30, the dollar gained impetus in the global markets.
Trump said he has not yet defined the oil of these countries. “We can or not,” the president told reporters in the White House Oval Hall.
“Let’s make this decision probably tonthly at night.” Trump said his decision will be based on the fact that the price of oil charged by the two commercial partners is fair, although the basis of his tariff threats refers to the end of illegal immigration and the smuggling of fentanyl used chemicals.
The United States imported almost 4.6 million barrels of oil daily in October and 563,000 barrels of Mexico, according to the management of energy information.
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‘We don’t need the products they have’
Mexico, according to the management of energy information. Daily US production during this month was, on average, almost 13.5 million barrels per day. But Trump was not concerned that import rates on US business partners would have a negative impact on the US economy, despite the risk demonstrated in many higher economic analyzes.
“We don’t need the products they have,” said Trump. “We have all the oil you need. We have all the trees you need, that is, the sawn wood. ”
The president also said that China would pay fares for its export of chemicals used to manufacture fentanil. He had previously declared a 10% rate that would add to other import taxes charged on China products.
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As the financial market reacted
The market had a strong reaction to Trump’s announcement of tariffs to Mexico and Canada. As a result, currencies that had been operating with appreciation before the dollar, such as the euro and the Mexican weight, began to retreat. Shortly after the end of the trading session in New York, the dollar advanced more than 1% compared to Mexican assets, quoted at 20,7234 pesos
By announcing tariffs, Trump stressed that the US needs to “raise money” in some way, suggesting that the increase in federal revenue will come with the implementation of its new tariff policies.
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Lula speaks of ‘reciprocity’ in case of taxation
This Thursday, 30, earlier, President Luiz Inacio Lula da Silva said that if Trump taxed products imported from Brazil, there will be reciprocity.
“If it taxes Brazilian products, there will be reciprocity from Brazil to tax products that are imported from the United States. There is no difficulty, ”Lula said in conversation with journalists at Planalto Palace.
In an event for Republicans in Florida, on Monday, 27, the US president said that Brazil is among the countries that charge many tariffs and want to “harm” the US. “China is a great creator of tariffs, just like India, Brazil and many other countries. We will not allow this to continue, because we will put the United States first, ”said Trump.
