President Donald Trump has vowed to lower prices for all Americans, and on day one of his presidency he signed an executive order directing his cabinet agencies to do just that. But he also likes the idea of tariffs, which could work counter to that goal.
"We're talking about a tariff of 10% on China based on the fact that they're sending fentanyl to Mexico and Canada," he said at a press conference this week. "Probably February 1st is the date we're looking at."
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President Trump has hinted that new tariffs could not just hit Chinese-made products, but products made in Mexico and Canada as well. But will these costs be passed on to consumers?
Last year, senior leaders at Walmart said that they would most likely have to raise prices on certain goods if tariffs are levied. But White House Press Secretary Karoline Leavitt said during the campaign that money and investment returning to America from oversees as a result of these penalizing tariffs would actually help the U.S. economy.
Leaders in China, Canada and Mexico have all criticized the possible tariffs, with officials in Beijing saying trade wars have "no winners."
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Still, President Trump appears to be forging ahead with his plan for new tariffs and he's not ruling out additional tariffs on other countries as well.
On Inauguration Day, he also took time to acknowledge former President William McKinley for his use of tariffs in the late 1800s — even vowing to rename America's tallest peak Mt. McKinley.
