President Donald Trump's tariffs in Canada and Mexico caused panic and accusations from the US top trade partners.
All three countries all politicians, business leaders, and industry groups have responded to distrust, and warned that tariffs could cause inflation, supply chain confusion and widespread unemployment.
On Saturday afternoon, Donald Trump imposed a 10 % tariff on Tuesday, which imposes a 25 % tariff on Canada and Mexico products, and 10 % of energy. He also imposed a 10 % tariff on products from China.
Mr. Trump said that it would be “responsible for explanation,” in order to promise that the collection will be placed in products from Canada and Mexico, stop illegal drugs, and stop the flow of immigration to the United States.
Canadian Prime Minister Justin Trudeau has announced 25 % of the 25 % tariffs on the scope of the United States, but Mexico's President Claudia Symbaum has announced tariffs without details.
The new trade barrier has been estimated by economicians of the International Economic Research Institute, in response to the growth of all three countries, accelerating inflation, and the greatest impact of Mexico and Canada.
They can also deepen their integration in North America for decades. Mexico and Canada will send more than three -quarters of exports to the United States, supported by USMCA, a triple trade agreement signed by President Trump's last presidential position.
“Customs duties will greatly increase the cost of all people. These tariffs hurt their families, communities, and companies every day,” said Candice Line, president of the Canadian Chamber of Commerce and Industry. 。
“Our annual steel trade is $ 2 billion, and these tariffs will cause significant confusion and financial difficulties in both Canada and the United States,” said Catherine Cobden, chairman of the Canadian Steel Producer Association. I mentioned it.
US companies that are developing businesses throughout the region are affected. The US Chamber of Commerce has stated that customs duties will confuse supply chains.
Trump has long concentrated his anger on the southern US border with Mexico, but he revealed that he had regarded Canada as part of the problem.
“The criminal network is related to the trafficking and smuggling business, enabling illegal transitions that have been ignored beyond the northern borders,” said the Presidential Ordinance.
XAVI Delgado of the Canadian Research Institute at the Wirson Center of Washington DC said he had not said what the United States would take on the northern border in Canada.
“The president can carry out duties only through IEEPA. [International Emergency Economic Powers Act] In response to “an unusual and extraordinary threat”. It is not an extraordinary threat, even if the White House believes that the trade deficit with Canada is unfair. As they explain, he is the crisis on the northern border, “he said.
Mexico's private sector leaders said that there was a panic and deep tension after Trump's announcement. Many hoped that the country would benefit from the second Trump term, but few believed he would follow his threat.
Pedro Casus Altrist, the director of the American Chamber of Commerce in the Mexico, said customs duties had been settled down for decades.
“If this measure is not reversed, three economic companies and consumers will suffer from the results: rise.[s] He said the cost of producers and exporters, loss of employment, inflation, and our families' purchasing power. ”
The Mexican economy is already decelerating, and it is expected that customs duty will fall into a recession. The Canadian Bank Governor Tiff McLem states that US tariffs are likely to fall into a recession.
“The only winner of tariffs on the U.S. Mexico and Canada is the major competitors in North America,” said Mexico's former trade negotiator Kenneth Smith as a trading partner. I added.
The Mexican people were shocked by the language used in the White House Fact sheet on tariffs. It accuses the Symbaum government that directly has the country's drug quartel and an unbearable alliance. It was not clear what Mexico could do to delete tariffs.
Since Trump was elected and began intimidation in tariffs in November, Canada and Mexico's representatives have tried to convince the President that such measures would hurt the US economy.
Some of Trump's friends have expressed concerns about the president's tariff announcement, emphasizing that Canada is the main trading partner.
John Rwellin, a partner of independent economics, consultant company, and former Economist of OECD, states that the main results of tariffs are inflation, and all countries, including the United States, are likely to be injured. Ta.
“The 80 -year era of stability in economic and financial relations and implementation has ended today,” he said.
The US Embassy in the United States stated that Beijing “shall lament and oppose the tariff,” and said, “We will take measures necessary to defend its legitimate rights and profits.”
“There are no winners in the trade war and tariff wars,” Liu Pengyu, an embassy spokesman. “Hiking of unilateral tariffs in the United States is severely violating WTOs. [World Trade Organization] rule. “
He added, “Instead of threatening other countries with arbitrary -intended hiking, it is necessary to solve its own Fentanyl problem in an objective and reasonable way.”
