Trump Delays Tariff Increases on Canada, Mexico, and China to February
Donald Trump has modified his approach to tariff increases during a recent press conference. Key points include:
- Trump mentioned potential tariff increases starting February 1 on Canada, Mexico, and China.
- Expected monthly increases are around 2% to 5%, based on discussions with Stephen Miran, head of Trump's economic advisors.
- Previously proposed tariffs of 25% on China in 2018 resulted in an effective rate of approximately 17% over one year.
- Miran noted that the dollar-import price of goods from China remained largely unchanged post-tariff.
- Trump's trade policy memorandum allocates until April 1 for federal agencies to report on issues related to migration and fentanyl flows.
- A new agency, the "External Revenue Service," is proposed to manage tariff collections.
- Trump emphasized shifting the tax burden from citizens to foreign entities through tariffs.