Donald Trump has threatened to impose a 25 per cent tariff on all products entering the country from Canada and Mexico.
The U.S. president-elect made the assertion Monday on his social media platform Truth Social, saying the tariff will be one of his first executive orders when he takes office Jan. 20 as part of his effort to crack down on illegal immigration and drugs.
The news left politicians scrambling, sent the loonie diving, and had economists warning of a catastrophic impact, saying the move could fuel inflation and have a critical effect on supply chains.
But how could all this affect you? Is it a serious threat? And while we’re asking … what even is a tariff? Listen, no judgment here. Grab a coffee.
Former Conservative industry minister James Moore breaks down how badly Donald Trump’s threatened 25 per cent tariff would hurt Canada’s economy. Plus, About That’s Andrew Chang joins The National to break down VIA Rail’s chronic performance problems and the connection to plummeting revenue.
What’s a tariff?
Tariffs are a tax on imports, typically charged as a percentage of the price a buyer pays a foreign seller. In the United States, tariffs are collected by Customs and Border Protection agents at 328 ports of entry across the country.
For example, the tariff on passenger cars is 2.5 per cent; on golf shoes, it is six per…
