Trump’s Proposed Tariffs Would Hurt Trade Partners Canada, Mexico, China—And US Consumers | Global News Avenue

Canadian and Mexican leaders show caution after President-elect Donald Trump’s election Threaten to impose high tariffs About America’s major trading partners.

On Monday, Trump said he planned to impose a 25% tariff An additional 10% tariff is imposed on all imports from Mexico and Canada.

although Tariffs are expectedthe announcement sparked a commitment from the U.S. Three tops Trading partners continue to talk before enacting tariffs. However, Trump said that some tariffs may be implemented as early as January 20, 2025 (the first day of the administration).

Canadian politicians recognize ‘challenge’, vow to take threat ‘seriously’

Canadian Prime Minister Justin Trudeau said he had a phone call with Trump on Monday to discuss “challenges we can address together.” CCTV News Report. Trudeau also confirmed that he would hold a meeting with the country’s prime minister to resolve the issue.

Doug Ford, the premier of the Canadian province of Ontario, said in a post on .”Take the border seriously. “

Meanwhile, economists believe Canada is particularly vulnerable. BMO senior economist Robert Kavcic said that nearly 75% of the country’s exports are sold to the United States, accounting for 25% of the country’s exports. Gross Domestic Product (GDP).

Mexico and China argue trade war puts countries at risk

Mexican President Claudia Scheinbaum also urged more dialogue on the issues but warned that Mexico could respond with tariffs of its own. Reuters Report. Sheinbaum points out that General Motors (General Motors) and Ford (F) Both companies have factories in Mexico, so those operations are at risk.

“One tariff will follow, and so on, until our mutual enterprise is at risk,” Sheinbaum told a news conference, adding that she planned to send a letter to Trump.

Chinese Embassy spokesperson Liu Pengyu also responded to the tariff threat, saying China has successfully cooperated with the United States on the drug trade issue.

China believes that Sino-US economic and trade cooperation is essentially mutually beneficial and win-win. No one wins a trade war or a tariff war,” an embassy spokesperson said in a statement to Investopedia.

Tariffs could exacerbate U.S. inflation and harm consumers

Even as Trump discusses tariffs on the campaign trail, economists are beginning to worry that they could lead to higher prices for American consumers.

Imports from Canada and Mexico account for about 4.7% of overall imports, according to economists at Deutsche Bank Personal consumption expenditures (PCE)the Fed’s preferred inflation measure.

“If an additional 25 percentage points of tariffs were passed through all stages of production, the core PCE price level is expected to rise by 1.4%,” the economists wrote in a recent commentary.

They’re not the only ones who believe this.

Ernie Tedeschi, economic director of the Yale Budget Lab, said tariffs on Mexico and Canada could lead to a 0.6% increase in consumer prices. In 2023 dollars, that would be $980 per household. Combined with proposed tariffs on China, that figure would rise to $1,180 per household.