Throughout the weekend, there are uninterrupted conversations. What is worse is that the Trump administration plans to have tariffs on Canada, Mexico and China earlier on Tuesday what it means.
Details are still appearing, some shocking, some are not very vigilant, and have conducted a lot of discussions.
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When the futures market is open, the financial market begins to respond at 6 pm on Sunday. This is the failure of tariffs and its meaning.
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What did President Trump do to tariffs?
He signed an order on Saturday that imposed a 25 % tariff on goods imported from Canada and Mexico and 10 % tariffs on goods imported from China. Rest time in the energy industry: The tariff rate of crude oil imported from Canada is 10 %. Canada is the largest exporter of American crude oil. Most of them are refineries in the Midwest.
Who is the target of tariffs?
At present, tariffs are only targeted at Canada, Mexico and China. This is a bit confusing. On the President Action page of the White House website, the command is listed as “improving responsibilities to solve the flow of illegal drugs on our country border.” Click the link to “apply responsibilities to solve the flow of illegal drugs in our northern border.”
When does the tariff come into effect?
12:01 Eastern Time in the United States. Tuesday. If the consignor can start the transportation process, some goods that are already in the United States may not be limited by tariffs.
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Which products may be affected?
Car may see the biggest impact. American manufacturers usually travel to and from Mexico and Canada. One -third of General Motors (Universal. Selling vehicles from Canada or Mexico. Most personal computers and mobile phones in the world in China. Apple (AAPL. iPhone is assembled in China, Vietnam and India.
At the same time, Mexico is the largest source of fresh vegetables and fruits in the United States in winter.
Canada deliver crude oil, wheat and other agricultural products to the United States. It also produces 75 % of the world’s maple syrup.
Manufacturers in the Toronto region have created Boeing’s landing gear (Ba. Jet passenger aircraft. Boeing cannot transfer tariff costs to consumers.
How will the economy of these three countries get new tariffs?
About 80 % of Canada exports to the United States. Canada may fall into a recession. Mexico is also possible.
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Will tariffs increase the price of consumers?
perhaps. A Capital Economics in London estimates that tariffs measured by personal consumption expenditure (PCE) price index will increase inflation rate, from 2.6 % to 3.2 % per year.
The index is the Fed’s preferred inflation measure. The Fed has been working hard to increase our inflation rate to 2 %. Fed Chairman Jerome Powell said at a meeting last week that unless the inflation rate is reduced, it is unwilling to rush to further reduce interest rates.
President Trump can come until Sunday that the price increase may come. “Will there be some pain? Yes, maybe (maybe not!),” Trump said in social media posts. “But we will make the United States great again, all of which deserve the price that must be paid.”
Raising image
Why does the government start this trade war?
Theoretically, tariffs should be punished too little behavior of these three countries, and Fentny, which is addictive, cannot stop the highly addicted Fantni into the United States
A biggest but self -evident reason is that the president does not like importing and believes that imports are not helpful for the domestic economy. Economic research has long been considered to benefit both parties in two -way trade.
Is it all?
Victoria Guida wrote in the Political Magazine that the Trump administration may be trying to increase universal tariffs. Some supporters believe that the collection of tariffs may be large enough and can offset the government’s tax cuts this year.
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At this point, the government is back to the 1890 McKinli tariffs formulated by the Republican Party controlled by the Republican Party. The tariff imposed a 50 % tariff on imports and increased the price of consumers. As a result, in the 1892 election, the Democrats brought a strong and strong rebound and landslide victory. Grover Cleveland returned to the president and served as the only president of service division-until Donald Trump’s 2024 victory.
What are the reactions of Canada, Mexico and China?
They are retaliated or expected. On Sunday, the Canadian government issued hundreds of types of goods made in the United States, which will be retaliated with retaliars. The Prime Minister of Ontario said the province’s alcohol stores will not sell the spirit of the United States. Due to the celebration of the Lunar New Year, China’s actions may be postponed.
What is the market response?
As of Sunday, most of them were negative. Futures transactions show that the average level of Dow Jones can open more than 400 points. The heavier Nasdaq-100 Index. The price of crude oil rose sharply.
More economic analysis:
- The main fund manager revealed that the stock market forecast in 2025
- The surprising December retail report subverted the inflation betting
- Jobs reports on the Federal Reserve’s betting, and the output of the Treasury has a great impact
What is the response of economists?
Many people still believe that Trump’s move is still a negotiation strategy to obtain better trade terms. Most questioning tariffs will promote the claim of the US economy.
In a CNN interview, former Treasury Minister Larry Summers said the move was “self -harm to the US economy.” He also predicts that the Trump administration’s tariffs will not cause policies in these countries or other countries.
Samers said: “Bullying is not a long -lasting victory strategy in the playground or in international relations. This is true.”
What is the business response?
If there are any signs of the Wall Street Journal, it is not good. The government said that it will levy tariffs, and newspapers have regarded it as “the most stupid trade war in history.”
It is almost certain that enterprises will pass the price to consumers.
Buy (Bby. CEO Corie Barry said that the company, its suppliers and consumers will share the higher cost of tariffs. “These are the price that people need, and the higher price is not available.”
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