The threatened tariffs of President Donald Trump against Mexico, Canada and China entered into force on Saturday night, slapping a 25% wholesale tariff on Mexico and Canada at the same time.
China, at this time, is only being collected with a 10%rate.
Trump is taking a more aggressive strategy against the residents of the Nation than in his first administration. At that time, it adopted a more specific approach to specific industries, such as steel and aluminum.
This time, tariffs seem to apply to most categories, although there was a size for Canadian energy, which tarife with 10% instead of 25%.
The radical rate could make a large number of articles that the United States import from its neighbors. Among common Mexican imports that will now bring more expensive to the country: fruits, vegetables, beer, liquor and electronics. And from Canada: potatoes, grains, wood and steel.
The head economist of EY, Gregory Daco, said agricultural products are an important category of trade between the United States, China and Mexico.
“We tend to think about merchandise products such as automotive products, furniture products and this type of heavy equipment. But we must not forget that we also exchanged a lot in the Agricultural Front, “Daco said.” So that we could see the ascending pressure for meat prices, ascending pressure for dairy prices. Those are the types of categories that directly hit consumer wallets. “
According to the Office of Labor Statistics, the high prices of supermarkets would increase, which increased by 28% in the last five years.
With automotive supply chains deeply intertwined between the three countries, cars and car parts can also get it more in the US.
S&S Automotive Services Cars in Secaucus, New Jersey, where the owner Keith Scaglione says that tariffs would probably make the cost of parts such as oil filters more expensive, which makes even routine solutions more expensive for consumers .
“Changes in oil, mainly that will be the first remarkable, an average oil change in most vehicles is now between $ 50 and $ 80. It will probably end more than $ 100,” said Scaglione.
Tariffs announced on Saturday could be the beginning of a policy war, with tariff fees at risk of triumphing even more. When announcing the rates on Saturday, the White House added that there was a “reprisal clause” added to the measures.
“So if any country chooses to retaliate in some way, the signal will be to take more measures with respect to the probable greater tariffs,” said the White House.
Trump is promulgating tariffs under the international law of emergency economic powers, which allows the president to respond to “extraordinary threat”, which Trump has identified as a fentanyl and drug crisis that he alleges that China, Mexico and Canada facilitate.
In conjunction with the 10% rate on China, the United States is pointing to its three main commercial partners, representing more than $ 1.2 billion of imports last year.
The 10% rate on Canadian energy is an important development for an industry that almost unilaterally sells crude oil to the US Canada Energy Regulator. UU. He informed that in 2023 he sent about 97% of all its exports of crude oil to The United States.
For US refineries that are specifically tuned with Canadian oil, any cost associated with import change could lead to more expensive gas prices in the pump.
Daco said that imposing tariffs “to great business partners would have serious economic consequences” for the United States, Mexico and Canada “, and could lead to an environment that is a higher inflation environment and also a lower growth environment due to the importance of the importance of trade with both economies. “
