Everything is about to get more expensive. Here’s what to know.
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What is the latest on the trade war and its implications?
Good morning. It's Monday, February 3rd. I'm Gideon Resnick in for Shamita Basu. This is Apple News Today. On today's show, the latest on last week's plane crash. Democrats pick a new leader and Beyonce finally wins album of the year.
But first, the Trump administration says it's hitting pause on sweeping tariffs on Mexico for a month while the two countries negotiate an agreement on security and trade. Mexican President Claudia Sheinbaum said on X that she had a, quote, good conversation with President Trump and is committed to having 10,000 National Guard troops at the border to block the flow of drugs like fentanyl into the U.S., This is a last-hour change to what was gearing up to be a major trade war, with Trump threatening 25% tariffs on goods from Mexico and Canada and a 10% tariff on goods coming from China. As of now, tomorrow's tariff deadline still stands for Canada and China, and leaders there have said they plan to retaliate.
Canadian Prime Minister Justin Trudeau published a detailed list of American goods that his country plans to tariff, specifically items from Republican-led states, taxing everything from Tennessee's whiskey to Florida's oranges and Kentucky's peanut butter. And some places say they'll no longer buy American beer and liquor. Prime Minister Trudeau spoke directly to the American people over the weekend, saying tariffs on his country's goods will hurt American consumers.
Tariffs against Canada will put your jobs at risk. potentially shutting down American auto assembly plants and other manufacturing facilities.
How will tariffs affect American consumers?
Experts warn the auto industry could take among the hardest hits. Canada produces more than 3,000 cars a day, 90% of which go to Americans. NBC News spoke with one worker at an automotive shop in New Jersey, who said that more expensive car parts inevitably means more expensive servicing of cars as well.
Oil changes mainly. That'll be the first noticeable one. An average oil change on most vehicles now anywhere between $50 to $80. It's probably going to end up over $100.
And that's the key to understand about tariffs. They are a tax, first paid by American companies who import the products, but then passed on to the consumer. Kirsten Hillman, Canada's ambassador to the United States, told ABC News' Face the Nation that the tariffs are perplexing for Canadians.
This is not something that Canada wants to do. We are actually interested in being and continuing to be your best customer. We buy more from you than any other country on the planet. And we love our American products. So we support 8 million jobs in the United States through the exports that you send to us. Let's keep that going and let's build on that.
Tariffs on Canada and Mexico go against the terms of the North American trade agreement that Trump signed in 2020. Now, Trump says the reason for the tariffs is because Canada and Mexico haven't done enough to curb the flow of fentanyl or migrants to the U.S. NPR fact-checked some of these claims and found that less than 1% of the fentanyl that makes its way into the U.S. comes from Canada. As for Mexico, Trump suggested the Mexican government is complicit in working with cartels to get illegal drugs into the country. Lots of fact-checkers have rejected that claim. Here's how ABC News' Matt Rivers put it.
Look, the Trump administration is correct when they say that corruption has allowed drug cartels here to flourish. It is systemic here in Mexico, and it has been for decades. But it's one thing to say organized crime and corruption is a problem. It's another thing to say the Mexican government has officially allied itself with these cartels.
And according to the US Drug Enforcement Administration, the amount of fentanyl making its way into the country from the southern border is way down. That is thanks in part to increased cooperation with Mexico under its new president, Claudia Scheinbaum. So what will this all mean for you and your wallet? USA Today has a good breakdown of costs you could expect to go up.
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Chapters
8 chapters
1
What is the latest on the trade war and its implications?
0:05–1:47
2
How will tariffs affect American consumers?
1:47–9:45
3
Is it safe to fly right now after recent aviation incidents?
9:45
4
What does the future hold for the Democratic National Committee?
6:18
5
How are tariffs impacting the auto industry?
2:06–2:16
6
What are the potential costs of a trade war with Canada and Mexico?
2:16–9:45
7
How does the aviation industry ensure safety amidst incidents?
9:45–9:54
8
What insights does Zach Wichter provide about air travel safety?
9:54–14:21
Speakers
5 identifiedMore from Apple News Today
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