President Trump has imposed a 25 % tariff on Canada and Mexico this weekend, and has signed an order to impose a 10 % tariff on China, but the United States has traded a posture to three largest trade partners. It seems to be.
Trump talked to Mexico's President Claudia Shainbaum on Monday. He stated on a social media on Monday morning that we agree to stop the expected tariffs for one month, as a wider range of negotiations on border safety and trade began between the two countries. 。
“We will move forward to participating in negotiations with President Symbaum,” Trump said.
Trump is expected to talk to Canada's Prime Minister Justin Tordeau on Monday morning and talk to him again on Monday after the 25 % tariff on Tuesday.
According to a statement from the White House on Saturday, “Such obligations will be applied after 12:00 am or 12:00 am on the eastern time of February 4, 2025.”
The White House spokeswoman told the hill that the tariffs would be enforced at noon on Monday morning and Tuesday. Mexico tariffs are aside.
The new tariff was delayed after Trump pledged to enact the import tax on the first day of his inauguration, but later delayed the announcement until Saturday. At least a part of the customs duties announced on the weekend will be ice again.
Trump takes two years during his company's term, and it is a contract that includes the labor and environmental standards excluded from NAFTA, and to make it easier to punish companies for destruction, the US-Mexico-Canada agreement It took two years to reconsider (USMCA) NAFTA Trade Agreement (USMCA). they.
The business world is broken because it is trying to know whether Trump's promise to tariffs will pass.
Here are five things that you need to know about Trump's tariff battle between Canada and Mexico.
Trump discussion of chasing a close trading partner
Trump is threatening the tariffs of Canada and Mexico and encouraging to stop the flow of immigrants and drugs between borders.
The United States has been dealing with the Opioid Crisis for many years, and immigrants in the South and Central America are regularly from Mexico, due to lack of local economic opportunities, crime and governance concerns. Impact of climate change About agricultural conditions.
With these complex international issues, Trump can use the nationalist messaging, which was part of his “American First” branding for a long time.
“Gang members, smugglers, human traders, and all kinds of illegal drugs and drugs are poured into the community across borders,” said the White House announcement on Saturday tariffs.
The tariff threats also enable Trump to utilize the political flow of economicism that resonates with his supporters.
Globalized supply chains and dissatisfaction with employment outsourcing in low -wage countries are particularly back in the 1990s, when free trade transactions were passed, especially in the 1990s, to enter the World Trade Organization. NAFTA is not yet in many countries in the country Dirty words。
Trump also has a trade deficit between the United States and their neighbors. The President says that it is unfair to purchase more products from Canada or Mexico than to buy from the United States, but most trade economists believe that deficit is due to comparative strengths in each economy. I am. 。
How Canada and Mexico are reacting
Canada and Mexico are two of the top three trading partners in the United States and are responsive to the threat of tariffs with a mixture of braf call and saber wrapping.
Ontario, Doug Ford, said on Sunday that Canada has banned US companies from the state government contract.
“The United States -based companies will lose hundreds of billions of dollars with new revenue. Only Trump will be responsible for them,” he wrote on social media.
Ford said he was targeting Starlink, a satellite company of Trump's advisor Eron Mask.
“We tear a state contract with Starlink. Ontario does not do business with hell people to destroy our economy,” Ford wrote.
Sheinbaum repeatedly sent a Trump Monday message on the suspension of tariffs, stating that she was sending additional troops to the US border to stop Fentanil's personal trader. She added on Wednesday that the tariff was a bluff, and that they wouldn't happen just before they made a transaction that would not be implemented so far.
A wide range of rebounds between various groups
Trump's duties under the International Emergency Economic and Economic Law (IEPA) were criticized by the business trade group on weekends, and at the same time, criticized for free trade trading.
“In charge of tariffs under IEEPA is unprecedented, only raising the price of American families and promoting supply chains,” said one of the largest business lobby in the United States. I mentioned in the Saturday statement.
Customs duties are taxes paid by individuals and companies that import products from overseas, and do not directly raise prices. Specifically, it is not a retail level paid by consumers, but a wholesale level tax.
Companies can respond to them in various ways, such as raising prices, maintaining margins, switching to domestic supply chains, stopping selling specific goods, colliding with the profit margin, stabilizing the price. Masu.
Lori Wallach, a director of the RETHINK Trade, who often fights the status of a trade policy, said that the tariff was meaningless.
“I try to achieve it using tariffs [the goals of stopping fentanyl trafficking and unauthorized migration] It's like trying surgery using a saxophone -wrong tool! She wrote in a social media analysis.
“If the goal is the resurrection of the US manufacturing industry, customs duties will stop industrial ability investment, US products, and price procurement will be suspended, and companies that have paid for coordinations instead of workers or consumers. She must be combined with the policy of investing in industrial abilities.
The most violent product and industry
Some of the most intense hits in Mexico and Canada's tariffs have car sectors because components often travel and back the boundary in the process of production.
Linda HasenFratz, chairman of Linamar, a car component manufacturer, stated in last week that North American automobile production would simply be closed as a result of tariffs.
“I would say that if the automotive parts have 25 % or 10 % tariffs, I will say. [it’s] Within a week when production stops, “she said.
Trump has specially proposed a 10 % tariff on Canada oil and gas, which could be felt in many economic sector. 25 % tariffs on Canadian wood can affect US houses and construction industries.
“Customs on wood and other architectural materials will increase construction costs and prevent new development,” said Karl Harris, chairman of the National Housing Construction Procedure Association.
The plastic industry that manufactures components used in many user end industries is also hit violently.
“Blanket tariff policies can confuse the movements of essential machines, products, and materials that continue to operate American manufacturers,” said the President of the Matt Seaform of the Plastic Industry Association. I mentioned in the statement.
Retaly tariffs are the target of the agricultural sector and was implemented by China during the first Trump Trump War in 2018.
“Generally, agriculture is the first goal because of other information sources,” said Bill Rainste, chairman of the International Research Center for the International Research Center, said Hill. “It is attacked by one of the strongest areas of Trump's support, what he had in 2018 was basically acquiring all farmers.”
The importance of imposing tariffs using IEEPA
There are various laws that may be called to issue tariffs, including the 1974 trade law section 301 used by Trump in 2018.
Currently proposed tariffs are charged under IEEPA. This is a more serious law that has a national security aspect to send more powerful messages beyond commercial regulations.
According to Congress Research Services, as in the same way as a trading with the enemy -derived enemy law, it is the same as “at the center of the modern US sanctions.”
Wallach said Jepa presented to Trump the “the most prompt authority that the president accesses” and that it can be based on a threat of tariffs.
“Maybe Fentanyl/immigration has been named” Emergency “to get the most promptly authorized authority that the president accesses the Int'LGENCE ECONOMIC POWERS ACT. Worach guessed.
