As the sun set on Saturday evening, the world watched as Trump boldly signed executive orders, unleashing a wave of tariffs on three of the US’ biggest trading partners – Mexico, Canada, and China. The act was framed under the International Emergency Economic Powers Act (IEEPA), with the White House citing the need to hold these nations accountable for their promises to curb illegal immigration and the influx of harmful substances like fentanyl into America.
The repercussions of these orders are far-reaching, with a 25 percent tariff announced on imports from Mexico and Canada, excluding a 10 percent tariff on energy products from Canada. China, too, is not spared, facing a 10 percent tariff. These tariffs are set to take effect imminently, causing ripples through American businesses and potentially impacting consumers as well. Mexico, Canada, and China stand as the primary purveyors of US goods, with their imports spanning a plethora of industries, from agriculture to electronics, transportation, and beyond.
-
Impacts on US Imports:
The United States heavily relies on Mexico and Canada for agricultural produce, with Mexico providing fruits, vegetables, and nuts, while Canada is a major supplier of animal products like beef. Both countries are vital in the transportation sector, particularly for cars, car parts, and crude oil. In fact, Canada holds the lion’s share, supplying nearly 60 percent of US crude oil imports. These new tariffs could potentially disrupt the crude oil market, affecting fuel prices for American consumers. -
China’s Role in Imports:
China dominates the electronics sector, with Mexico following closely behind. Machinery, toys, games, furniture, and plastics are among the top goods imported from China in recent years. President Trump hinted at future tariffs on electronics, pharmaceuticals, and steel, suggesting more turbulence ahead for the market. - Responses to the Tariffs:
Leaders from Canada and Mexico wasted no time in responding, retaliating with their own tariffs on US goods. Canadian Prime Minister Justin Trudeau announced a 25 percent tariff on approximately $107 billion US dollars (155 billion Canadian dollars) worth of American products. Meanwhile, John Murphy of the U.S. Chamber of Commerce expressed concerns over the implications of Trump’s tariffs, suggesting that they could ultimately harm consumers and disrupt supply chains.
In conclusion, the unveiling of these tariffs serves as a pivotal moment in international trade relations. The repercussions may not only impact businesses but also trickle down to the everyday consumer. The need for a strategic and calculated approach to such economic decisions is crucial to prevent unintended consequences. As the fateful Tuesday approaches, the world waits with bated breath to witness the unfolding impact of these tariffs on the global economic landscape.
Leave feedback about this