Tariff 'pain' will be 'worth the price': Donald Trump

PALM BEACH: On Sunday, US President Donald Trump acknowledged that Americans may experience economic "pain" from the tariffs he imposed on key trading partners, but argued that the cost would be "worth the price" to protect US interests.

On Saturday, Trump authorized a 25% tariff on Mexico and Canada, despite the existence of a free trade agreement between the two countries, and added a 10% tariff on China in addition to existing levies.

Trump had promised before his inauguration to take such actions, citing concerns that these countries weren't doing enough to stop illegal immigration and the trafficking of the deadly opioid fentanyl into the United States.

In enacting the tariffs, which are set to take effect Tuesday, Trump invoked the International Emergency Economic Powers Act.

The decision sparked immediate retaliatory threats from all three countries, with analysts warning that the trade war could slow US economic growth and increase consumer prices in the short term.

"Will there be some pain? Yes, maybe (and maybe not!)" Trump posted Sunday morning in all-caps on his Truth Social media platform. "But we will Make America Great Again, and it will all be worth the price that must be paid."

Trump and his advisors had previously downplayed concerns that tariffs might raise US consumer prices, as rising costs were seen as a key issue in his November election victory over Democrat Kamala Harris.

To avoid a surge in fuel and electricity prices, Trump set the tariff on energy imports from Canada at a reduced rate of 10%.

In a separate post, Trump again suggested that Canada should become the 51st state of the United States, further escalating tensions with one of the country's closest allies. He claimed that the US subsidizes Canada to the tune of "hundreds of billions of dollars," adding that without this support, Canada could not survive as a viable nation.

"Therefore, Canada should become our Cherished 51st State," he wrote on Truth Social, suggesting this move would result in "much lower taxes, and far better military protection for the people of Canada - AND NO TARIFFS!"

The US Census Bureau reported a $55 billion trade deficit in goods with Canada for 2024.

Canadian Prime Minister Justin Trudeau responded by promising to impose retaliatory tariffs on $155 billion worth of US goods, starting Tuesday with a first round of 25% levies, followed by a second round in three weeks. Several Canadian provinces have already announced actions, including halting US liquor purchases.

Mexican President Claudia Sheinbaum also vowed to implement "Plan B," which includes unspecified tariff and non-tariff measures.

The Wall Street Journal editorial board, known for its right-leaning stance, sharply criticized Trump's tariffs in a piece titled "The Dumbest Trade War in History," predicting higher costs for American consumers.

Trump fired back on Sunday, accusing the "Tariff Lobby," led by the "Globalist, and always wrong" Wall Street Journal, of trying to justify the long-standing "ripoff of America" regarding trade, crime, and drugs.

He has frequently condemned US trade deficits as proof that other countries have taken advantage of the United States.

"THOSE DAYS ARE OVER!" Trump declared, before heading to one of his Florida golf courses.

Trump has also threatened to take similar trade actions against the European Union. A spokesperson for the EU responded, pledging that the bloc would "respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs."