The Great Orange Idiot declared by Truth Social that he would, by executive order, slap 25% tariffs on goods imported from Mexico and Canada, and an additional 10% on Chinese goods, aimed at halting an “invasion” of migrants and fentanyl into the United States.
Il Trumpo also mentioned a scary, “unstoppable” caravan of migrants coming from Mexico.
If implemented, the tariffs would scramble global supply chains and impose heavy costs on companies that rely on trading with some of the world’s largest economies. Each country affected would likely implement retaliatory tariffs, which would affect exporters. Americans could expect price hikes, supply shortages, bankruptcies, and job losses.
Experts are arguing whether the threats are a negotiation tactic, possibly to unite North American allies against China, or whether the tariffs would come to fruition as a protectionist measure.
Imposing tariffs on Canada and Mexico would immediately blow up the United States-Mexico-Canada Agreement (USMCA), which Trump implemented and took effect in 2020.
What imports would be affected?
U.S. imports from Mexico include cars, machinery, electrical equipment, food and beer. Canada supplies oil and gas, machinery and parts and much else. The United States relies on China for electronics, particularly phones, along with toys, furniture and plastics. Economists warn that tariffs could affect grocery prices, which were a key election issue. Mexico supplied more than half of U.S. fresh fruit imports in 2022, according to the Agriculture Department. -- WaPo
- “If you voted for Trump because you thought he was going to bring down the cost of housing, a lot of our lumber, cement and other materials comes from Canada, which means that construction costs are going to go up,” commentator Catherine Rampell said on CNN on Monday.
- Canada is a top supplier of aluminum and steel, which are essential for construction, automotive manufacturing and packaging. Tariffs would raise the cost of raw materials, affecting industries that use these metals and even products such as soda cans.
- Canada is the largest exporter of crude oil and refined petroleum to the U.S. A 25 percent tariff would increase fuel costs, affecting gas prices and heating oil. This means consumers would likely see higher prices at the pump
- Canada and Mexico are also significant exporters of agricultural goods to the U.S., including fruits, vegetables, meat and dairy. A 25 percent tariff would make everyday staples such as avocados, tomatoes, beef and cheese more expensive for U.S. consumers.
- Canadian beef exports across all markets are projected to total 595,000 tons this year, with about 80 percent destined for U.S. customers. Last year, the U.S. imported $2.7 billion worth of avocados from Mexico, the U.S. Department of Agriculture reported.
From Newsweak
Even Rand Paul knows tariffs.
