What are the definitions, why is Trump use them, and will prices rise?

US President Donald Trump announced a 25 % tariff on all steel and aluminum imports.

He has already provided a 10 % tax on all products from China – which responded with its own measures – and threatened to provide a tariff for products from Canada and Mexico.

Trump says the definitions will strengthen the American economy and “protect” the country from illegal immigration and drug flow.

Customs duties are taxes imposed on goods imported from other countries.

Companies that bring foreign goods to the country pay the tax to the government.

Usually, the definitions are a percentage of the product value. A 10 % tariff for Chinese goods means that a 10 -dollar product will have an additional $ 1 fee for it.

Companies may choose to transfer some or each cost of definitions to customers.

Definitions are an essential part of Trump’s economic plans. He promised to introduce import duties against some major trading partners in America during his campaign.

He says the definitions will enhance our manufacture and protection, as well as increase tax revenues and develop economics.

the The White House said The President also said, “Taking bold measures to hold Mexico, Canada and China responsible for their promises to stop illegal immigration and stop the toxic fentanel and other drugs from flowing to our country.”

Fintanel is associated with tens of thousands of deaths in the United States every year.

The Trump administration says the chemicals come from China, while Mexican gangs provide them illegally and manage the fentanel laboratories in Canada. Canadian Prime Minister Justin Trudeau said his country is responsible for less than 1 % of fentanel enters the United States.

Canada also provided more than 50 % of imported aluminum in the United States in 2024.

The shares of steel makers in the United States increased after the announcement. However, American companies that use steel and aluminum to make products have warned that definitions may raise their prices.

The Canadian government said that the definitions were “completely unjustified” and Rapid retaliation pledged.

Trump previously announced a 25 % tariff on steel and 15 % on aluminum in 2018, during his first term as president. However, he then negotiated with exceptions for many countries including Australia, Canada and Mexico.

Despite the exemptions, customs duties raised the average price of steel and aluminum in the United States by 2.4 % and 1.6 %, respectively, according to the American International Trade Committee.

Together, China, Mexico and Canada formed more than 40 % of imports in the United States in 2024.

China

10 % fees on all goods imported from China to the United States Its validity began on February 4. Then Trump said Shipments of less than $ 800 (645 pounds) will be exempted).

Beijing revenge with Its definitions, which came into effect on February 10. This customs tariff includes 15 % on American coal and liquefied natural gas products, and a 10 % tariff on crude oil, agricultural machines and large engine cars.

China has repeatedly expressed its opposition to a trade war with the United States.

Canada

A 25 % proposed tariff is scheduled to start on all the goods that enter Canada on February 4. However, this was delayed for 30 days.

Canada also stopped its 25 % revenge tariff, at a value of $ 155 billion ($ 107 billion; 86 billion pounds) of US imports.

Prime Minister Trudeau said that Canada was carrying out a “1.3 billion dollar border plan” to add “new helicopters, technology and employees to the borders”, as well as “increasing resources to stop the flow of fentanel”. A large part of the border security plan has already been announced.

Trump said the delay will allow the United States to see “whether or not an economic deal with Canada can be reached.

Mexico

The proposed definitions were also delayed by 25 % against Mexico in a month, as well as new measures from Mexico against American goods.

Mexican President Claudia Shinbom has agreed to send 10,000 members of the National Guard to the US -Mexican border “to prevent drug trafficking, especially fentanel”.

Xinbom said that the United States in turn agreed to increase measures to prevent trafficking in high American weapons to Mexico.

All goods from China are worth more than $ 800 covered by a 10 % tariff.

Economists warn that companies that sell imported goods are likely to increase the prices of American consumers, to cover the cost of duty.

If the measures against Mexican and Canadian imports continue, it is expected that the elements they produce will become more expensive.

Car manufacturing can collide severely. Cross the parts of the American, Mexican and Canadian border vehicles several times before the car is fully assembled.

TD ECONOMics suggested that the high price of the car in the United States may increase by $ 3,000 due to import taxes.

Other goods include Mexico that can be affected by fruits, vegetables, spirits and beer.

Canadian goods like steel, wood, grains and potatoes are likely to become more expensive.

Canadian energy will face a 10 % tariff instead of 25 %.

American definitions increase the washing machines imported between 2018 and 2023 of the price of washing equipment by 34 %, according to official statistics. Prices fell as soon as the definitions ended.

Some experts suggest that the Trump’s new tour of the tariff can push a broader trade war that may generally raise prices.

The Capitol economy said that the annual rate of American inflation may increase 2.9 % to 4 %.