President Donald Trump's 25% fee on goods from Mexico and Canada entered into force On Tuesday, along with a duplication of tariffs for some Chinese imports at 20%.

In response, Canada decided 25% fee With nearly $ 100 billion US imported goods on Tuesday, including machinery, car parts, and alcohol, and Ontario is adopting a 25% fee on its energy export – province Powers 1.5 million homes in Minnesota, New York, and Michigan, for Bloomberg.

China also approved tariffs on Tuesday – 10% to 15% in US agricultural products and filed a lawsuit against new tariffs with the World Trade Organization.

Mexico will notify its countermeasures on Sunday.

Canada and Mexico have essentially had trade agreements without tariffs with the US for three decades, for The US today. However, China and the SH.BA are engaged Tit-for-tat fees Since 2018.

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So far, the news has scratched reserves.

Here's what we know about tariffs and how consumers and businesses can affect the JBA

Why are you implementing Trump tariffs?

In one executive order Signed on Monday, Trump stated that tariffs are intended to reduce the US trade deficit and fight Fentanil's constant crisis.

Trump has stated that he is implementing tariffs to put pressure on Canada, Mexico and China to stop drugs as fentanil to enter the US, for Fox Business. By Administration of drug implementationNearly 70% of 107,000 deaths from drug overdoses in 2023 included opioids such as fentanil.

Trump wrote in the executive order that China's “failure” to “whitewash the steady influx of synthetic opioids, including Fentanil” presented “an unusual and extraordinary threat” and that it will increase fees in response.

The Trump administration also says it is also using tariffs as a way to secure the border and stop the flow of immigrants without documents from Mexico and Canada.

In one Post on social truth In November, Trump said the fees for goods will “remain in force” while “drugs, in particular, Fentanil” and “All illegal foreigners stop this occupation of our country!”

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What are the fees and what will they say to consumers?

Fees are taxes set for goods imported from other countries. For example, a 20% fee for Chinese goods means that a $ 10 product would have a $ 2 tax added to price. Importer will have to pay tax For us customs and border protection when the product crosses the border.

Companies can absorb the additional fee or switch to customers in the form of price raising.

Target and Best Buy CEO have already shown that companies will raise prices for consumers in response to tariffs.

CEO Target Brian Cornell relevant Cnbc Tuesday they produce prices will rise over the coming days as tariffs come into force. Cornell noted that the target depends on the production from Mexico to winter, so buyers can see prices to rise for fruits and vegetables such as strawberries and avocados.

Also Tuesday, CEO Best Buy Buy Corie Barry said in calling company profits that US consumers were “much possible“To see the price increase in response to tariffs. The best purchase sources of about 55% of its products from China and 20% from Mexico, Barry said.

Anyway, said CEO I Chipotle Scott Boatwright Nbc Sunday that the company aims to suck Tariff costs and only increase prices if the costs raised are important.

How is the stock market responding to tariff news?

US shares fell in response to tariff news, industrials, S&P 500, and Nasdaq Composite all fall over 1% on Tuesday, for Wall Street Journal.

In midnight trading Tuesday, Dow lost 1.8% or more than 770 points, while S&P and Nasdaq each dropped more than 1.5%, for Nip.

VIX Instability Index, Wall Street's fear gauge, hit the highest level still This year on Tuesday, climbing 24.35 at the time of writing after closing on Monday 22.78. Vix The average closing value This year was 16.86.

What are the benefits of tariffs?

US imported 1.2 trillion dollars more goods and services in 2024 than exported. Over 40% Imports generally came from China, Canada and Mexico.

By Institute of Economic PolicyFees benefit domestic producers by raising US prices of foreign goods compared to comparable goods produced domestically. Local companies also do not have to pay fees for the goods they produce and sell domestically.

Trump underlined this point on social truth Tuesday: “If companies are transferred to the United States, there are no tariffs !!!”

Tariffs can also increase government revenue. Committee on a responsible federal budget, a non -art, nonprofit organization, appreciated This 25% fee for imports from Canada and Mexico will increase government revenue by $ 110 billion throughout the year. If the tariffs become permanent, they will collect $ 1.3 trillion in the next ten years.

However, experts at Peterson Institutes for Internal Economics, an independent, nonprofit and non -party research organization say tariffs will not diminish trade deficit.

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