US Press Secretary Karoline Leavitt announced from the White House podium that President Donald Trump's tariffs on Canada, Mexico, and China will take effect on February 1. The tariffs will impose a 25% levy on goods from Canada and Mexico, while imports from China will face a 10% tariff. This announcement counters earlier reports suggesting a delay until March, bringing an unexpected twist to global trade dynamics.
The tariffs on Canada and Mexico specifically aim to tackle the issue of fentanyl flow from Canada. Despite concerns, the White House insists these measures do not signal the start of a trade war with Canada. However, the administration has yet to decide on a timeline for potential tariffs on the European Union, leaving room for speculation and uncertainty in international markets.
In a separate development, gold prices have surged to an unprecedented high of approximately $2,820 per troy ounce. This rise is attributed to a strong safe-haven demand among investors, who are bracing for the potential repercussions of President Trump's tariff policies. The announcement has injected a dose of uncertainty into the market, prompting investors to seek refuge in the precious metal.
The Trump administration's decision to proceed with these tariffs has been made clear, despite previous indications of a possible postponement. These measures will be made public on Saturday, offering stakeholders the opportunity to assess their impact. The administration maintains that the tariffs are strategically designed to address specific issues rather than ignite broader trade conflicts.
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