Trump hits Canada, Mexico and China with steep new tariffs, stoking fears of a trade war
President Trump signed an administrative order on Saturday to impose a 25 % tariff on imports of Canada and Mexico, and at the same time increased a 10 % tax. President Trump threatened Salvo even before returning to power earlier this month. He emphasized that he was willing to use trade policies, even so for some of the largest economic allies in the United States.
Tariffs take effect at 12:01 on Tuesday. The order imposed a 25 % tariff on Canadian goods, except for “energy resources” (such as oil and natural gas), and only hit 10 % tariffs.
“If Canada retaliates the United States through import tax on Canada exports or similar measures, the president may increase or expand its duties applied to the order according to the order to ensure the effectiveness of the operation and order reading.
According to the White House, Salvo aims to curb the flow of immigrants and illegal drugs to the United States. Promote the revival of the domestic manufacturing industry; and increase federal income.
Experts warn that the impact of tariffs may affect the three largest trading partners in Canada, Mexico and China, and the United States, as well as the United States itself. Wendong Zhang, a professor of economics at Cornell University, said that the Canadian economy may be reduced by 3.6 %, and the Mexican economy may be hit by 2 %.
At the same time, inflation in the United States may increase by up to 1 percentage point, which increases it to 4 % each year, or the goal of the Fed with a 2 % annual rate of 2 % is doubled.
EY chief economist Gregory Daco said in the report on January 31: “We emphasize that high tariffs on US trading partners may cause stagnation The expansion impulse has also caused fluctuations in the financial market. ”
DACO added: “These tariffs on Mexico, Canada and China will marked Trump’s first wave of trade taxes in the new term of Trump, and the effect far exceeds these economies, because other countries/regions can achieve potential potential Targets, and American companies will cause damage and revenge in the supply chain.
American consumers have been influenced on the tariffs of Mr. Trump, telling public opinion testists The expected price is higher If the president follows his plan. Economists say that these expectations may prompt some consumers to buy goods before Trump work on January 20.
Analysts of Oxford Economics said in a research report: “The prospects of tariffs seem to affect the behavior of consumers and enterprises.” “The importer soaring in December may be an attempt to make any tariffs, and consumers may be possible The expenditure will be filed for expected price -related prices. “
American consumer You can see a higher price Agricultural products and agricultural products imported from Canada and Mexico, including the former and the beef of avocado and the latter strawberry. According to TD Economic, the average price of cars may increase by 3,000 US dollars due to tariffs, because a large number of cars have now been built in Canada and Mexico.
