President Donald Trump announced The economic war of the two recent allies and three largest trading partners in the United States This weekend. The rapid response of American allies Canada and Mexico is a counterattack. As a result, there will be economic casualties. You may be one.
Mexico’s tariffs on all products are 25 % tax rate. Canada has the same treatment, except for oil and natural gas exports, this will be targeted by 10 %.
In addition, China has received 10 % tariffs on people who are already effective.
Ally response
Trump signed an execution order signed a tariff on Saturday. Later that day, Canada and Mexico’s tariff plans for American goods refuted.
Economic attacks on neighboring countries (Mexico and Canada) are one of the largest trading partners and allies in the United States. In the eyes of many people including Canadian Prime Minister Justin Trudeau, it is unnecessary.
“But don’t need this,” Trudeau said When announcing his country’s countermeasures for Trump’s operations. “As President John F. Kennedy said many years ago, ‘Geography made us a neighbor, history has made us our friends, and economics has made us our partner. The allies “and after decades of time and decades, this has lasted for decades. From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Famousz to the streets of Kandaha, we fight you in the darkest time and be killed. “
Mexican President Claudia Sheinbaum said in a video announcement that her country will have more details on today’s tariffs.
China ’s response to Trump’ s operation is that it is a precedent for the EU ’s tariffs on electric vehicles. China is filed a lawsuit with the World Trade Organization (WTO) and questioned tariffs. The Ministry of Commerce of the country said that Trump’s move “Serious violations” international trade rulesEssence
In addition, China stated that he would formulate a “countermeasure” but did not provide any details.
The WTO challenge is only like symbolic, because Trump prevented the judge from appointing the organization in 2019.
Economic response
“The tariffs of Mexico and Canada are actually For U.S. stocks and the US economy, the worst newsThomas Brenier, the head of Lazard Freres Gestion, told Barron’s. “This is a bad news for the American industrial complex, which will seriously increase the cost of automobile manufacturers and destroy the supply chain.”
How to increase tariffs
Tariffs are a form of TRICK taxation for consumers. This is the way it is used to import products in the United States.
- Tariffs or expenses collect foreign companies exported to foreign companies.
- These companies have raised prices to bear tariffs.
- American companies that purchase imported goods have increased prices to pay higher import prices by paying tariffs.
- You pay more.
Trump devouts that tariffs will not hurt our consumers during his campaignEssence For example, in August last year, Wilkes-Barre in Pennsylvania said: “Tariffs are taxes on foreign countries. Many people like to say that this is the tax to us. No, […] This does not affect the taxes of our country. ”
On Sunday, the president reversed his true society in writing.
“Will there be some pain? Yes, maybe (maybe not!). But we will make the United States great again, all of which are worth paying at the price.”
Tariffs and your taxes
Trump’s fees to Canada, Mexico and China In 2025, it will increase $ 830 for the tax form of ordinary American familiesAccording to the estimation of the taxation foundation.
In addition, economic output caused by tariffs will decrease by 0.4 %.
Most importantly, Moody’s chief economist Mark Zandi said in November Trump’s tariffs are equal to the increase in taxation to the familyEssence
“The extensive tariffs proposed by former President Trump will increase large -scale taxes on American families because they pay more costs for all imports, cut their purchasing power, which will seriously affect their expenditure and overall as a whole Economy, “Zandi told CNBC.
Tariff business group
Before Trump took action on Saturday, economists and business leaders issued a warning on a trade war. This is some of their comments:
“In the end, the manufacturer will be the first tariff, which destroys our ability to sell products at a competitive price, and Make American work in dangerEssence “- Jay Timmons, CEO of the National Manufacturers Association
“More than 70 % of the two basic materials from Canada and Mexico, respectively.
“Tariffs of wood and other building materials have increased construction costs and prevented new development costs. Consumers eventually paid tariffs in the form of higher housing prices.” – ” Carl Harris Carl Harris Chairman Carl Harris
“Tariffs from all imported goods from Mexico and Canada, especially in the United States that cannot be available in the United States, may lead to higher consumer prices and revenge on American exporters.” – Tom Madrecki, Vice President of Consumer Brand Association Supply Chain Elasticity
Men who have no plan?
Researchers and investment professionals are also frustrated by Trump’s actions.
“Trump is waving itWhen we do n’t do this, we have a huge trade deficit with Canada, while the Canadians are responsible for Fentney crossing the border without any circumstances. Lack of policy inevitably leads to some kind of reversal because there is no overall strategy. “- Derek Scissors, senior researcher at the American Enterprise Academy.
“The market has been priced a lot on the US tariff issue, but Trump always has risks exceeding expectations. General uncertainty that exceeds tariff issues: Trump is completely unpredictable at allEssence “- Gilles Guibout, the head of the European stocks of AXA IM.
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