US President Donald Trump plans to impose 25% tariffs on Mexico and Canada starting February 1, accusing the two close neighbors of allowing illegal migrants and drugs into their countries.
"We're looking at 25% for Mexico and Canada, because they're letting a lot of people into the country. I think we'll do it on February 1st," Trump said after his inauguration on Monday (20/01).
Trump also indicated that he is still considering tariffs on all countries importing into the US, including Indonesia. However, the US President admitted that he is not ready for that.
How could it not be, the imposition of tariffs on two countries alone has been warned to cause a "disaster" for the automotive industry in Uncle Sam's country. Because, both import large numbers of vehicles from Canada and Mexico.
However, Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto plans to establish bilateral economic cooperation to reduce tariffs. This can be improved through various channels, including the potential formation of a free trade agreement.
Bernstein, a research firm, said in November that Stellantis NV imports about 40% of the vehicles it sells in the U.S., General Motors Co. imports about 30%, and Ford Motor Co. 25%.
-# Image Source: Bloomberg