Unlike the 2024 campaign, when Trump has guaranteed an American living expenses, the Republican President has long been predicted by many economists. I admit. market.
Trump’s actions, the counter from a US trading partner, and what it means for American consumers is as follows:
This movement contains three largest US trading partners
Trump initially declared an economic emergency that imposed 10 % of China’s imports and 25 % of the imports from Mexico and Canada. The energy imported from Canada, including petroleum, natural gas, and electricity, is taxed at 10 %. The target country is the largest trade partner in the United States.
China’s taxation was still enforced on Tuesday. However, on Monday, Trump, Mexico and Canadian leaders announced a contract to prevent a 30 -day potential trade war. In Mexico, President Claudia Shanbaum has promised to expand 10,000 national guards on the US Mexican border.
Trump proposed tariffs will reach the entire US market. Several names: Canada oil, wood, plastic, textile, Chinese computer chips. Customs duties in Mexico may add costs for agricultural products, clothing, sake, and automotive parts produced there.
Trump’s original order did not include the mechanism to give exceptions to US importers.
If you do not reach permanent transactions, Canada, which emphasizes the potential impact, offers more than 4.3 million barrels a day in the United States.
According to the US Energy Information Bureau, the United States tends to consume about 20 million barrels per day. It produces about 13.2 million barrels every day in Japan.
Trump says these taxes are related to immigrants and drugs -neglecting economics
The President often spoke about US trade deficit as a candidate and for decades before he entered politics. He blamed international trade trading and lamented the steady trend of manufacturing from the United States to other countries.
But he made his latest actions as the use of immigrants and drugs. Trump has blamed three US partners because Fentanyl has not done enough to stop the flow of Fentanil into the US market. He accuses Mexico and blame Canada on the influx of immigrants across our borders.
“It is my duty as the president to ensure the safety of everyone,” Trump said on a social media after the first weekend announcement.
Canada, China, and Mexico responded quickly
Trump’s orders included promises to escalate tariffs when US trading partners answered themselves. The threat did not hinder prompt response.
Before they talked to Trump on Monday, Symbaum ordered retaliation duties, and Canadian Prime Minister Justin Trudeau said that up to 155 billion dollars of US imports would match 25 % of the customs duties. I did it.
Tordeau urged Canadians to “choose a Canadian product” at the time of shopping, and effectively encouraged our products. Local Prime Minister of Canada said that it would delete American alcohol brands from government shelves.
On Tuesday, the Ministry of Commerce has announced that it is conducting counter duties for the United States on multiple products -10 % for 15 % of tariffs, crude oil, agricultural machinery, and large -scale, a liquefied natural gas product. Credit displacement vehicle.
On Tuesday, the state administration for market regulations in China said that Google was investigating on allegedly violating the antitrust law.
Previously, the ministry stated that it would complain to a World Trade Organization for the “illegal practice of the United States”, but the WTO appeal process has been inhibited in recent years because several US administration has blocked the judge’s appointment.
A WTO spokeswoman said on Monday that no member of the United States had called for some measures over tariffs on tariffs.
On the other hand, short -term deterrent between Trump and the leader of the nearby counter part may not be retained.
Consumers will see the effect even if the company pays for tariffs.
Endline consumers do not pay tariffs directly. It is a foreign -based exporter or an imported company company that transports products across borders. However, it is certain that it increases the overall cost to introduce the product to the final retail suspension, and in the process, each player will increase the price to encounter new border obligations.
Gregory Daco, the Chief Economist of Tax and Consulting Firm EY, calculates that tariffs increase inflation. Inflation was operating at 2.9 % annual rate in December. DACO predicts the US economy, which increased by 2.8 % last year, decreasing 1.5 % this year and 2.1 % in 2026.
The Yale University Budget Research Institute estimates that Trump’s tariffs cost for $ 1,000 to $ 1,200 for the average US households.
These estimated values were assumed to include tariffs such as Mexico and Canada.
The effect can even reach the product that was “made in the United States”. Occasionally, the label may only mean that the product is assembled in a US facility or is finished in another method, but only contains raw materials, parts, or packaging from other places. there is.
And, as Trump said during the campaign, the energy cost of the supply chain transport costs promotes consumer prices.
Considering the percentage of US energy supply in Canada, especially in the Midwest, where Canadian crude oil is sophisticated, tariffs on the northern US border increase gas prices.
Trump changed his song about the results of consumers
The candidate Trump made a drastic and fantastic promise for the US economy.
He promised to reduce the price of grocery “immediately” -Sometimes he said “on the first day,” and reduced the utility bill within one year after inauguration. He stated that he would “quickly” deal with the shortage of housing, rent and the rise of new houses. He repeated the Biden administration as a failure for inflation, and was dissatisfied with the higher living expenses of American voting.
Vice President JD VANCE claimed that Trump would provide more to US workers in an interview with Fox News Channel’s Sunday Morning Futures.
Now, Trump supports such claims.
“Is there any pain? Yes, maybe (and maybe not),” said Trump on Sunday morning. “But we will make the United States great again, and it is worth the price that we need to pay.”
