While the world was aware of one of its greatest decisions since it returned to the position, the president of the United States, Donald Trump, the White House announced on Friday the imposition of 25% tariffs on imports from Mexico and Canada (the 10% for Canadian energy products) and 10% to those of China since this Saturday, but the president had not approved them and the presidential agenda of the day was blank. Finally, Trump signed three executive orders by imposing these tariffs. Decrees authorize Trump to upload them as expected.
Trump declares a national emergency to invoke the Law of International Emergency Emergency Powers (IEEPA), which authorizes a president to unilaterally manage imports during a crisis. The argument quoted by the Executive Order is the entry of fentanyl and immigrants without papers. The tariffs enter into force next Tuesday and will remain until Trump decides that the governments of Canada, Mexico and China have done enough to combat the crisis of fentanyl and drugs and, in the Mexican case, also the immigration crisis.
“Today, I have implemented a 25% tariff on imports from Mexico and Canada (10% about Canadian energy), and an additional 10% tariff on China,” Trump wrote in Truth, his social network. “This was done through the International Emergency Economic Powers Law (IEEPA) due to the great threat of illegal foreigners and mortal drugs that kill our citizens, including fentanyl. We have to protect Americans, and it is my duty as president to guarantee everyone’s safety. In my campaign I promised to stop the avalanche of illegal immigrants and drugs that cross our borders, and the Americans voted overwhelmingly in favor of it, ”he added.
The reaction of the affected countries did not wait. The Canadian Prime Minister, Justin Trudeau, announced that he will replicate with the same recipe: 25% tariffs on a list of products from the neighboring country worth 30,000 million US dollars, also since Tuesday. A second tariff wave on products for 125,000 million will apply three weeks later, reports Jaime Porras Ferreyra From Montreal. “Canada will not tolerate an attack by a country that is supposed to be an ally and friend,” he said. For its part, the president of Mexico, provides “tariff and non -tariff measures.” Sheinbaum instructed the Secretary of Economy, Marcelo Ebrard, to adopt a front of the tariff war initiated by Trump, although he did not detail the specific measures that his government will take, reports Elías Camhaji From Mexico. It is foreseeable that China will announce countermeasures in the coming weeks after underlining before the Trump movement that would defend its “national interests” before a new tariff war.
The magnitude of the tariffs Trump has approved could have serious repercussions on certain industries, such as motoring and the energy sector. The US production and supply chains are very integrated in some sectors with those of their neighbors. From January to November 2024, the United States imported goods from Mexico for 466.6 billion dollars, bought merchandise for 337.2 billion dollars and imported products from China for 401.4 billion dollars. The largest commercial deficit within that period was with China, for the amount of 270.4 billion dollars, followed by Mexico (157.2 billion) and Canada (55,000 million), although Trump has exaggerated those figures repeatedly and has falsely presented them as subsidies.
In campaign, Trump but finally the rates applied to imports of his greatest geostrategic rival are lower than those of the two neighbors. Elon Musk, Chief of Tesla, and other Trump allies have strong economic interests in China.
Tariffs could have dramatic economic consequences and infringing the protections of the free trade agreement between the three countries, the treaty between Mexico, the United States and Canada (TMEC).
Inflationist risks
Tariffs threaten to plunge Canada and Mexico in a recession, although the southern country can continue to be competitive even with that surcharity, especially with the depreciation of weight. The growth of the United States, creating distortions in the supply and production chain of key sectors, such as motoring, and pressing prices, can also be injured. The latter could lead to the Federal Reserve to maintain high interest rates for longer,
“It would be good for Donald Trump to begin to focus on getting prices to lower them,” said Charles Schumer, leader of the Senate Democratic minority. “Not all tariffs are the same. Donald Trump is pointing his new tariffs to Mexico, Canada and China, but they will probably hit Americans in their wallets. I worry that these new tariffs increase even more costs for US consumers. We should focus on going hard against competitors who cheat, such as China, instead of attacking our allies. If these tariffs are fully in force, the prices of everything will rise, from the groceries to cars and gasoline, which will make even more difficult that middle -class families can simply get ahead, ”he added.
This Saturday’s decision had been taking place for a long time. The Republican first threatened the 25% tariffs to Mexico and Canada, his two neighbors and main commercial partners, last November, being elected president. Then he said that he would approve them the first day in office. The president of Mexico, Claudia Sheinbaum, and the Prime Minister of Canada, Justin Trudeau, SE. Despite the good words about those conversations, after taking possession as president, on January 20, Trump moved his threat to February 1. Mexico and Canada have tried to strengthen the control of their borders to deter the US president of putting tariffs, but they have not succeeded.
In addition to the punishments of Mexico and Canada with levies to its products, Trump continues with the idea of a general tariff for all imports. He has also promised sector tariffs on products such as pharmacists, semiconductor chips, steel, aluminum and copper, which could be applied widely to many countries, including Canada and Mexico.
Among the recipients of American tariffs will be the European Union, “what if I will impose tariffs on the European Union? Do you want the sincere answer, or do we give you a political answer? Absolutely, tariffs. The European Union has treated us terribly, ”said Friday at the White House. “They do not buy our cars, they do not buy our agricultural products, essentially, they buy us almost anything. And we have a tremendous deficit with the European Union. So we will do something very substantial with the European Union. We will take the level where it should be, ”he added.
Trump’s protectionist policies threaten to trigger a large -scale commercial war in the world.
