- Canada, Mexico cannot prevent illegal immigrants from entering us: Trump
- The White House spox says that Trump’s deadline for Trump’s prices for prices.
- Trump provides prices on the European Union, to “treat us unjustly”.
Washington: Former American President Donald Trump will impose prices in Canada, Mexico and China – the three largest trade partners in the United States – having succeeded on Saturday, a decision announced by the White House which raised generalized concerns concerning The potential impact on world trade and economic relations.
Trump reiterated his plans for 25% prices on the neighbors of Canada and Mexico, saying that they had failed to repress illegal migrants crossing the American border and the flow of fentanyl.
He also threatened an obligation of 10% for Chinese products on the same day, in the same way on drugs.
“The deadline of February 1 that President Trump set up in a statement several weeks ago,” the White House spokesman Karoline Leavitt said on Friday.
“Canada and Mexico have enabled an unprecedented invasion of illegal fentanyl that kills American citizens, and also immigrants in our country,” she added.
She did not engage in the exemptions in the sectors and rejected the warnings that this would arouse a trade war.
Trump on Friday told journalists in the oval office that he was going to “absolutely” impose prices on the European Union in the future as well, saying that the block had “treated so terribly”.
Canadian Prime Minister Justin Trudeau promised an “immediate response” if Trump was acting, while Mexican President Claudia Sheinbaum said his government was in close contact with Trump administration.
The American president has not specified any tools that he would use, although analysts suggest that he could exploit the emergency economic powers, which allow the president to regulate imports during a national emergency. But this could be hampered by prosecution.
Fentanyl was responsible for tens of thousands of deaths per overdose per year.
Beijing has rejected the claims of its complicity in trade, while the American closure of Canada replied that less than one percent of undocumented migrants and fentanyl entering the United States come from its northern border.
Some analysts believe that tariff threats are a negotiation issue to accelerate the renegotiation of the existing trade agreement known as USMCA between the United States, Mexico and Canada.
“However, the potentially dismantling of a free trade area of several decades could be a significant shock,” said a recent JPMorgan note.
The prices are paid by American companies to the government on purchases abroad, and the economic burden can be incumbent on importers, foreign suppliers or consumers.
Risks of recession
Deputy Professor Wendong Zhang of Cornell said that Canada and Mexico would suffer the most American prices under 25% and reprisals.
“Canada and Mexico should lose 3.6% and two percent of real GDP respectively, while the United States would suffer a real 0.3% loss of GDP,” he added.
Oxford economy analysts have warned that general prices and declines could switch Canada and Mexico in recession, and that the United States is also risking shallow slowdown.
The largest export sectors in Mexico – food and drinks, transport equipment and electronics – are counted most of its manufacturing activity, said Joan Domene by Oxford Economics.
Canada has exported almost 80% of its products in the United States in 2023 and represents almost 60% of US imported oil imports, the Congressal Research Service noted.
It is not clear if oil imports can be exempt.
Canadian heavy oil is refined in the United States, and the regions that depend on it may lack a ready substitute.
Canadian producers would bear the weight of prices, but American refiners are also said to be hit by higher costs, Tom Kloza said from oil prices. This could cause gasoline price increases.
Imports of American goods from the two countries largely enter an average or with very low rates, said the Peterson Institute for International Economics.
A tariff hike would shock industrial buyers and consumers.
‘Grand Bargain’
Trump also plans more prices on Chinese products.
Beijing promised to defend his “national interests”, and a spokesperson for the Ministry of Foreign Affairs had previously warned that “there are no winners in a trade war”.
During the electoral campaign, Trump raised the idea of samples of 60% or more from Chinese imports.
Isaac Boltansky of the BTIG financial service company expects “additional rate increases” on Chinese products.
“Our feeling is that Trump vacillates between the carrots and sticks to China, the ultimate goal being a kind of big business before the end of his mandate,” he said in a note.