President Trump has threatened to overturn North America's trade, which gives a fundamental blow to the relationship with the US top economic partner.
Trump plans to impose import taxes to two US allies, and then announce a sudden new tariff on products from Canada and Mexico.
The President has not answered some questions about his plan, such as how high the tariff, when, is issued, which laws are issued, and which products may be exempted. I left that.
However, Trump's most aggressive proposal will attack all Canada and Mexico products with 25 % import taxes. Experts say that, while promoting retaliation damage from the two countries, deeply integrated into the US economy, promoting the price of food and fuel prices.
“It will be a large -scale transaction. These are the two largest trading partners in the United States, saying Edward Fishman, a part -time professor at the Columbian University of Colombia, said:
“And I think it's a reason to look at many people, including those who have supported President Trump, and to express a lot of concerns,” he said in the future, “CHOKEPOINTS: American Power in the Age of Economic Warfare.” The author, Fishman, added.
Trump itself paid for the potential taxes paid by US and companies in the United States who ordered and imported target products. The President frequently claims to pay for tariffs to foreign countries, claiming that tax itself is necessary to fight other economic harm.
“Mexico and Canada had nothing to do in trade,” he said on Thursday and confirmed a plan to impose tariffs. “They have treated us very unfairly in trade. We can make up for it very quickly because they do not need the products they have.”
Trump has grasped for many years that the United States has imported more products from Canada and Mexico than states. The US trade deficit in Canada was about $ 45 billion in Mexico in 2024 and $ 170 billion. According to the federal government data。
Trump and his protectionist allies have long argued that the United States should re -compromise on trade between Canada and Mexico, as a basic problem.
“Our farmers, ranchers, and our fishermen are the best in the world and they are treated poorly. As we talked about, we treat our dairy farms terribly. On Wednesday in front of the Senate Commercial Committee, Howard Lutonic, a candidate for Trump's candidate, said he was a candidate for the Ministry of Commerce.
“If Canada intends to rely on the United States for its economic growth, why not treat our farmers, ranchers, and our fishermen with respect?”
During his first term, Trump led NAFTA reorganization, which was praised by the Democratic and Union defenders by boosting US products through various labor and environmental provisions.
However, Trump has expanded his tariff purpose and anger at Canada and Mexico during his second term. The president has argued that Canada and Mexico have refused to take necessary measures to stop the flow of fatal drugs such as immigrants and Fentanil.
LUTNICK also claimed that Mexico's cartel operates a drug institute in Canada on Wednesday, so that human traders can avoid security enhanced on the southern border.
“If we are your biggest trade partner, please respect us,” he said. Therefore, it is not tariff. It is the action of domestic policy. “
The Canadian and Mexican officials are ready to respond to their own tariffs on US products, a major domain, which is a major domain among the Senator of the state who rely on agricultural exports. I revealed it.
The United States also imports billions of dollars of oil from Canada and can be dramatically expensive by imported tax.
Blowback can make more money on agricultural products from Mexico and Canadian oil, and at the same time hurt farmers who are trying to invade the dairy products in Canada and other major industries.
This tariff can also derail the US automotive industry, which is deeply intertwined with Mexico and Canada factories and assembly factories. Before cars and trucks are ready for sales, automobiles and automotive parts can cross the border between the northern and southern United States, and a tariff occurs on the way.
“I'm worried that the cost of the vehicle is high. Many families can't afford to buy them now, and in the short term, when there is a tariff that deals with Canada's seamless transactions. Sen, it will definitely affect the price and make the car even more affordable, “Sen said.
For Fishman, Canada and Mexico have a sudden tariff on the United States if Trump has reduced the production of petroleum or completely stops specific imports and exports. He added that he could take more dramatic measures.
He added that Trump did not identify a specific measure or milestone, for Mexico and Canada to release tariffs.
“There is no excellent track record of forced economic measures, such as tariffs and sanctions. It is clear goals to achieve such functions without explicitly laying out what you are trying to achieve. I haven't, “he said.
“They can be used as negotiations tools or to deal with structural problems such as deficit, but it is difficult to do both at the same time.”
