US President Donald Trump announced on Monday that a 25 percent tariff for goods from Mexico and Canada will enter into force on Tuesday, which will increase fears in the North American trade war and rattle financial markets.
His comments were caused by a sharp decrease in US shares during daytime trade, while the Mexican peso and the Canadian dollar were also weakened.
“They will have to face the tariff. They need to do it is to build their automobile plants and other objects in the United States – then they will not have tariffs, ”Trump said in the White House.
Trump doubles tariffs, referring to a fentanyl crisis and a trade imbalance
Trump said that “there was no room left” for the transaction to prevent tariffs, referring to fentany flows in the United States.
He also announced that mutual tariffs will enter into force on April 2 against countries that impose responsibilities on US products. In addition, he confirmed plans to increase tariffs for all Chinese imports from 10% to 20% as a fine for the ongoing sending of Fentanil Beijing to the United States, claiming that China “did not take adequate steps to facilitate an illegal drug crisis.”
CEOs and economists warn that Trump’s tariffs for Canada and Mexico, which will affect more than $ 900 billion for US annual imports, will significantly violate the deeply integrated economy of North America.
The Trump administration confirmed that the tariffs will enter into force on Tuesday at 12:01 EST (0501 GMT). At this moment, Canada and Mexico will encounter a 25% tariff, and Canadian energy products will perform 10%. Mexican officials did not immediately respond to requests about comments.
Foreign Minister of Canada Melanie Jolie told reporters that Ottawa was ready to answer. She noted that the level of unpredictability and chaos came from the oval cabinet, and they will deal with this. Gustavo Flores-Masias, professor of state policy at Cornell University, said that consumers can see prices for several days.
“It is expected that the automobile sector will face significant negative influences, not only because of failures in supplies chains that cover all three countries, but also because the prices of the car can weaken consumer demand,” said Flores-Macchais.
Mexico, who for the first time managed to avoid the first round of Tariff Trump, promising to deploy thousands of troops on his northern border, strengthened its efforts to combat drugs and gave an idea that this could also impose new measures on Chinese goods entering Mexico.
At the press conference on Monday before the announcement of Trump, President Claudia Shainbaum said that her government was calm, waiting for his decision. She still emphasized that Mexico would answer if tariffs are accepted.
According to the Shangbaum of the country It has a plan B, C and D, ”said Shanbaum, without providing specifics. She noted that trade and fentanil cooperation with the United States was “very good”.
According to the Center for Control and Prevention of Diseases, synthetic opioids – initially fentanil – were responsible for 72,776 deaths in the United States in 2023.
Law and economists sound anxiety to the risks of tariffs and the risks of inflation
Representative Suzan Delben, a democrat from Washington, warned that the introduction of tariffs for Canada and Mexico would burden American families with higher costs in a grocery store, gas pump and a pharmacy.
“Not a single president should have authority to increase tax without voting in Congress,” she said in a statement.
Meanwhile, the White House trade consultant Peter Navarro announced on Monday CNBC that any inflationary effects of tariffs will be a “small” second order. ” He added: “I do not see the president to hesitate about this, because he understands that to achieve strong and prosperous America – with an increase in real wages and a large number of jobs at the plant – this is the path that he chose.”
On Saturday, Trump leveled his targeted sanctions initiatives, starting a national investigation of security in lumber and wood, which could lead to the emergence of huge new tariffs. He especially delivered Canada, a country that has already been engaged in 14.5% of the tariffs for tail wood.
In the previous week, Trump actively reprimanded many Western countries for taxation of American technological enterprises and threatened to bite more obstacles to billions of products. On the same day, he imposed a new investigation into copper tariffs and other trade restrictions.
Trump intends to impose “mutual tariffs” equivalent to the tariffs of other countries, and either removed trading barriers. The European Union may quickly encounter this initiative, since VAT taxes levied by the European Union on its state -member states significantly affect the result.
However, Desmond Lahman, Senior Researcher of the American Institute of Enterprises, former Deputy Director of the International Department for the Development and Consideration of the Policy of the International Monetary FundHe believes that Trump The strategy “Tariffs for steroids” can contribute to inflation and potentially push the world economy to recession.
