Annnd the Trump talk continues…
ICYMI: After President Donald Trump solidified his re-election, he announced plans to sign an executive order to impose a 25% tariff on goods imported from Canada and Mexico. Trump’s tariffs could also extend to an additional 10% levy on imports from China.
The threat of the levies has raised concerns that consumers would feel the effect at the grocery store through higher prices and possible shortages.
Tariff takedown: House Democrats are working to ensure the Trump administration’s tariff tsunami doesn’t get the green light. Representatives introduced the Prevent Tariff Abuse Act to stop the president from imposing tariffs through the International Emergency Economic Powers Act (IEEPA).
Republican representatives expressed concern that a blanket tariff on Mexico and Canada should be a last resort, but the tool should still be available.
Meanwhile, Democrats say they don’t want it on the table, arguing that Trump’s plans could raise annual taxes by up to $3,900 per household.
The introduced bill would prevent possible “abuse” of the IEEPA. It could also help avoid retaliation from Canada and Mexico, who have already threatened to take action against American levies.
Why does it matter? Mexico is currently the top importer of U.S. corn and pork, which could also be impacted if Mexico retaliates with tariffs on U.S. ag exports.
Canada is the top importer of U.S. ethanol and supplies a large number of cattle south of the border.