President Donald Trump on Sunday defended his decision to impose broad tariffs on Canada, Mexico and China, acknowledging the taxes may cause “some pain” but claiming it “will all be worth the price,” as the import taxes have been widely condemned by business groups and economists who warn they’ll raise prices for American consumers.
President Donald Trump speaks to reporters as he signs executive orders in the Oval Office of the ... [+]
Trump imposed 25% tariffs on imported goods from Canada and Mexico—other than energy from Canada, which will be taxed at 10%—and an additional 10% tariff on goods from China, which he claimed was to hold the countries “accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
The president defended his decision on Truth Social early Sunday, writing, “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
Economists have long warned Trump’s tariff plan would raise prices for American consumers—as the import taxes are paid by the U.S. companies that import foreign goods, who then pass on those costs to the consumer by raising prices—and a May analysis by the nonpartisan think tank Peterson Institute for International Economics (PIIE) concluded Trump imposing broad tariffs on imported goods would “[inflict] significant collateral damage on the US economy.”
Canada and Mexico have both levied retaliatory tariffs on U.S. imports in response to Trump’s directive, while China said it would file a lawsuit with the World Trade Organization and take “countermeasures” in response to the move.
“MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!” Trump said on Truth Social in defense of his tariffs. “WE ARE A COUNTRY THAT IS NOW BEING RUN WITH COMMON SENSE — AND THE RESULTS WILL BE SPECTACULAR!!!”
Trump’s tariff order will take effect Tuesday for duties that are levied on imported goods, except for any imports that were already in transit before Trump ordered the tariffs on Saturday. Canadian Ambassador Kirsten Hillman told ABC News Sunday the country is “hopeful” the tariffs will not take effect and the country’s government is “ready to continue to talk to the Trump administration about that,” though it’s unclear that Trump will negotiate at all on his plans.
Business and manufacturing groups have criticized Trump’s tariffs, with U.S. Chamber of Commerce vice president John Murphy saying the move “is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains.” National Association of Manufacturers CEO Jay Timmons said the “ripple effects” of the tariffs “will be severe,” particularly for smaller manufacturers, warning, “Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.” Leaders of major companies have previously suggested Trump’s tariffs will lead to higher prices for American consumers, with Walmart chief financial officer John David Rainey telling CNBC in November the import taxes mean “there probably will be cases where prices will go up for consumers.” Best Buy CEO Corie Barry acknowledged on the company’s earnings call in November that most of its goods are imported from China and Mexico and any tariffs would likely result in higher prices, saying, “These are goods that people need, and higher prices are not helpful.”