Commerce Secretary Howard Lutnick announced upcoming tariffs on Canada and Mexico, with President Trump set to finalize details. Economists warn these tariffs may elevate consumer prices despite aims to reduce inflation. Treasury Secretary Scott Bessent suggested appointing an “affordability czar” to help lower cost burdens for working Americans. Bessent remains optimistic about managing inflation amidst tariff implementations.
On Sunday, Commerce Secretary Howard Lutnick announced that the United States plans to impose tariffs on Canada and Mexico, with President Donald Trump set to determine the specific levels. Tariffs on these countries, which were initially postponed, include a proposed 25% duty on imports from Mexico and most goods from Canada, alongside a 10% tariff on certain Chinese products.
Lutnick clarified, “There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate.” Economists predict that these tariffs will raise the prices of various goods in the United States, despite the ongoing efforts to manage inflationary effects on consumers and businesses.
Treasury Secretary Scott Bessent remarked that Mexico has offered to align its tariffs on China with those of the United States, which he believes would be beneficial if Canada also reciprocates. He indicated that these tariff adjustments might take effect around Tuesday, stating, “by Tuesday, or maybe the tariff wall goes up, and then we see what happens from there.”
To tackle inflationary pressures, Bessent announced plans to appoint an “affordability czar” within the Treasury Department, which aims to focus on key areas that could assist working-class Americans. In addition, he proposed the establishment of an affordability council to streamline efforts.
Bessent expressed confidence regarding price stability, arguing that tariffs implemented during Trump’s first administration did not adversely affect prices, despite previous analyses indicating significant additional costs incurred by U.S. companies due to these tariffs. He stated, “It’s a holistic approach. There will be tariffs, there will be cuts in regulation, there will be cheaper energy. I’m expecting inflation to continue dropping over the year.”
In conclusion, the U.S. plans to impose tariffs on Canada and Mexico this week, a move that could significantly affect the prices of consumer goods. Treasury Secretary Scott Bessent’s introduction of an affordability czar aims to mitigate inflationary pressures. While he projects a continued decline in inflation, concerns remain regarding the overall impact of tariffs on American consumers and businesses, as previously documented increases in costs suggest a complicated economic landscape ahead.
Original Source: www.cnn.com
