(AURN News) — New tariffs on imports from Mexico and Canada took effect Tuesday as President Donald Trump aims to pressure companies to relocate manufacturing to the United States.
The 25% tariffs are part of what the president describes as an effort to incentivize businesses to build and expand operations on American soil rather than in neighboring countries.
“So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” Trump said during a press conference at the White House on Monday.
During his remarks, Trump highlighted what he characterized as positive responses to his trade policies, citing new investments from major corporations like Honda and Apple.
“And I would just say this to people in Canada or Mexico, if they’re going to build car plants, the people that are doing them are much better off building here, because we have the market – we’re the market where they sell the most. And so I think it’s going to be very exciting. Very exciting for the automobile companies,” he said.
The tariffs have already produced market turbulence. Wall Street responded negatively, with stocks declining on both Monday and Tuesday. Cryptocurrency markets also experienced significant drops following news that the tariffs would begin.
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