President Donald Trump has confirmed tariffs on Canada and Mexico will be implemented tomorrow following a period of uncertainty.
During a press conference announcing a £100billion in semiconductor plants, Trump also revealed that tariffs on China from 10 per cent to 20 per cent.
The US President claimed other countries have been "very unfair" and the United States has become a "laughing stock" over the last 40 years.
Previously, Trump has cited his intention to charge a 25 per cent universal tariff on imports coming in from Canada and Mexico.
This announcement comes amid widespread criticism from economists over whether these taxes will grow Amercia's economy.
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Trump is going ahead with implementing sweeping tariffs despite US GDP being predicted to take a hit
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According to research conducted by the Tax Foundation, the imposed tariffs on China would reduce long-run gross domestic product (GDP) by 0.1 per cent.
Furthermore, the think tank claims the proposed tariffs on Canada and Mexico will see GDP slip by an additional 0.3 per cent.
Outside of tax raids on America's neighbours, the proposed expansion of steel and aluminum tariffs will hit GDP long-term by less than 0.05 percent, and the proposed tariffs on motor vehicles and motor vehicle parts by 0.1 per cent.
These estimates for GDP contraction do not take into account foreign retaliation, which Canada, Mexico and China have pledged to carry out.
The European Union (EU) is also likely to be targeted by the Trump administration, however details have yet to be revealed about what the economic bloc will be charged.
On X, the Tax Foundation's vice president of Federal Tax Policy Eric Wolf broke down how American households will likely be impacted by the signature economic policy of the second Trump administration.
She shared: "Combined with the China tariff changes slated for tomorrow, Trump’s tariff are a $130billion annual tax increase on Americans and will shrink American incomes by 1.2 per cent this year."
According to the tax expert, families will be paying nearly $1,000 per household on average thanks to this sweeping tariffs.
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Trump's plan of new tariffs have sent shockwaves through the stock marketsGETTY Following Trump's confirmation tariffs will go ahead, the Dow Jones Industrial Average dropped more than one percentage point on this afternoon.
During the press conference, Trump claimed there was “no room left” for either Mexico or Canada to negotiate to prevent tariffs being introduced.
He shared: "No room left for Mexico or Canada. The tariffs, they’re all set. They go into effect tomorrow."
