What’s Next In Trump’s Trade War | Global News Avenue

President Donald Trump has been tariff for Canadian, Mexico and China to take effect. American companies and families are preparing for various consequences.

On Saturday, President Donald Trump ordered a 25 % tariff on most incidents imported from Mexico and Canada, less than 10 % of Canadian oil tariffs, and 10 % of Chinese products. Trump said that tariffs are designed to stop illegal immigration and drug smuggling, protect the manufacturing of the United States, and return the US economic policy to the 1890s after the import tax is funded by the federal government.

This is the next expectation.

How long will tariffs last?

If the tariff may be reduced quickly Negotiations with MexicoIs there any sign.

In Monday morning, in separate social media posts, Mexican President Claudia Sheinbaum and Trump have confirmed that they have reached an agreement on the US -Mexico border. Both of them said that the implementation of tariffs on neighbors in the southern United States will be postponed for one month.

Starting from Tuesday, Tariffs in Canada and China will still be levied. However, similar negotiations can be performed before or after implementation.

Deutsche Bank’s strategist Jim Reid wrote in a comments on Monday: “These tariffs may still be negotiated in a few hours or days.” Turn on its implementation. “

Oxford Economics Ryan Sweet’s tariffs on Mexico and Canada said “will remain unchanged for a long time”, and some products (such as building materials and transportation equipment) will be Exempted.

The price may rise, the economy may slow down

However, if tariffs do continue, it may have profound economic impact. Trump admits that tariffs may cause some economic difficulties when pursuing a new “golden age”.

“Will there be some pain? Yes, maybe (maybe not!).”

A large number of analysis of economists predicts that consumers will suffer higher prices, and merchants will pass the cost of tariffs to customers. Yale University Budget Lab estimates that the overall living cost measured by personal consumption expenditures may increase by 0.7 %, which is equivalent to a typical home loss of $ 1,200.

Swate wrote in the comments that the trade war will delay the US economy, cause unemployment and increase the unemployment rate. He predicts that as the economy slows down, the unemployment rate in the United States may be as high as 4.5 % this year, and without tariffs, the speed of levy may be as high as 4.1 %.

The rise in higher inflation and rising unemployment rates may constitute a dilemma on the Federal Reserve. The reserve is appointed using monetary policy to maintain low inflation rate and high employment. Sweet predicts that in reducing the cost of lending to promote the economy to prevent unemployment and the need to slow down their economy and maintain inflation, it will attract the Federal Reserve.

Trade war can expand

Trump’s scope of trade war may expand, causing further economic losses.

The Canadian government said it will charge 25 % retaliatory tariffs on certain US products (including paper and beverages). According to the Chinese government’s website, the Chinese government will adopt “countermeasures” by several news media, including a complaint with the World Trade Organization.

Trump’s order said that the president can collect more tariffs on any revenge, which increases the possibility of a trade war that may become more expensive.

Trump said in an interview with Broadcasting Corporation (BBC) on Sunday that tariffs on the EU would “definitely happen”, which increased the possibility of the possible expansion of the trade war.