President Donald Trump’s tariffs on Canada and Mexico have caused panic and condemnation of top American trading partners. The latter stated that the tax will destroy the North American economy and overthrow the integration of decades.
All three countries politicians, business leaders and trade associations are full of doubt, warning tariffs will bring inflation, supply chain interruption and extensive unemployment.
On Saturday afternoon, Donald Trump signed an administrative order to levy 25 % of tariffs on comprehensive tariffs on Canadian and Mexican products from Tuesday and 10 % of the energy tariffs. He also levied 10 % tariffs on Chinese goods.
Trump said taxation will be placed on Canadian and Mexico goods, “responsible for them” to avoid stopping illegal drugs and immigrants into the United States.
Claudia Sheinbaum, President of Mexican, announced a tariff on retaliation of American goods, while Canadian Prime Minister Justin Trudeau is expected to do this later on Saturday.
In the next few years, the new trade barriers of the new three countries will slow down and accelerate inflation. Mexico and Canada have the most impact, and the economist of Peterson Institute of International Economics estimates.
They will also subvert North America’s deepening and integration over decades. Mexico and Canada sent more than three -quarters of exports to the United States with the support of USMCA with the three -way trade agreement, which signed the agreement during the last presidential period of Trump.
Candace Lain, president of the Canadian Chamber of Commerce, said: “Tariffs will greatly increase the cost of everyone: These tariffs will hurt families, communities and enterprises every day.”
American companies, which have business throughout the region, will be affected. The US Chamber of Commerce said tariffs will destroy the supply chain.
Trump has long been concentrated on his anger on the southern border between the United States and Mexico, but he clearly stated in the administrative order that he regards Canada as part of the problem.
Administrative orders pointed out: “The criminal network is related to population trafficking and smuggling, so that we have performed illegal immigrants in illegal migration of our northern border.”
Xavi Delgado at the Canadian Institute of Washington Center in Washington SAR said that the United States has never told Canada what actions must be taken on the northern border.
“President can only implement tariffs through IEEPA [International Emergency Economic Powers Act] Response “abnormal and extraordinary threats”. Even if the White House believes that its trade deficit with Canada is unfair, it does not constitute an extraordinary threat. As they describe, the crisis in the northern border will happen. “He said.
The leaders of the Mexican private sector said panic and nervous after Trump announced the news. Many people hope that the country will benefit from the second Trump’s term, and few people believe that he will follow his threat.
Pedro Casas Alatriste, director of the American Chamber of Commerce in Mexico, said tariffs are a step of love relationship established for decades.
“If this measure is not reversed, companies and consumers of these three economies will suffer consequences; [it means a] The costs of producers and exporters have increased, work losses, inflation, and decreased purchasing power of our families. “He said.
The economy of Mexico has slowed. If tariffs are levied for a long time, it is expected to fall into a recession. Tiff Macklem, the governor of Bank of Canada, said U.S. tariffs may also cause Canada to fall into recession.
Former Mexico trade negotiation representative, Kenneth Smith, said: “The only winner of the United States’ tariffs on Mexico and Canada is the main competitors in North America.”
The language used in the White House in Mexican was shocked. The language accused the SHEINBAUM government of establishing a “unbearable alliance” directly with the country’s drug Carter. It is unclear what measures can Mexico take the tariffs.
Since Trump was elected and began to threaten November tariffs, Canada and Mexican delegations have been trying to persuade the president, which will also harm the US economy.
Some of Trump’s Republicans have also aroused concerns about the presidential tariffs, emphasizing that Canada is their main trading partner.
John Llewelyn, a partner of independent economics, is a consulting company and a former economist of OECD. He said that the main consequence of tariffs will be inflation, and all countries may be harmed, including the United States.
He said: “The 80 -year -old era between the rules and economic and financial relations between countries that end today.”
