President Donald Trump halted his proposed tariffs on Canada and Mexico after reaching an agreement with the two countries. The 25% tariffs on goods from Mexico and Canada were temporarily suspended after both countries pledged reinforcements along the U.S. border. The suspension will last 30 days unless the countries come to a long term agreement.
National emergency measure
Trump placed tariffs on Canada and Mexico as a national emergency measure to combat illegal immigration and fentanyl trafficking in the United States. Trump said Mexico harbors cartels who create harmful drugs and have since expanded their laboratories to Canada.
“The government of Mexico has afforded safe havens for the cartels to engage in the manufacturing and transportation of dangerous narcotics, which collectively have led to the overdose deaths of hundreds of thousands of American victims,” said the White House.
Canadian Prime Minister Justin Trudeau said via X that Canada will appoint a fentanyl czar and will list cartels as terrorist groups while increasing border security. Trudeau originally placed retaliatory tariffs on the United States but has suspended them for the time being. He said the mutual 30 day tariff suspension allows time for Canada and the United States to work together.
Claudia Sheinbaum, president of Mexico, sent 10,000 troops to the border to combat illegal immigration and fentanyl trafficking in the United States. This decision came days before the tariffs were set to take effect.
Sheinbaum, Trudeau and Trump must work out an agreement within 30 days or Trump will reinstate the tariffs.
Implications
Economists worry the potential tariffs will do more harm than good to the American people.
The Tax Foundation, a nonpartisan international group, found tariffs will cost American consumers an estimated $800 per household in taxes alone.
What does this mean for the average college student?
The average college student can expect to tighten their budget if the tariffs take effect. There will be increased costs for groceries, gas and living in general. The tariffs will cost the average American household an additional $2,600 a year in living expenses.
It’s unclear how the next 30 days will pan out, but for American consumers, a hefty price tag is at stake.
Author: Hannah Clove
Photo courtesy of Anna Moneymaker
Editor: Anna Mower
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