Unlike the campaign in 2024, when Trump filed an economic agenda to reduce the cost of living, the Republican President admits that many economists have long predicted. market.
Here’s what you need to know about Trump’s actions, US trading partners’ counter and US consumers.
This movement includes up to three US trading partners.
Trump first proclaimed an economic emergency that carried out 10 %of China’s imports and 25 %of Mexico and Canadian imports. The energy imported from Canada, including oil, natural gas and electricity, is taxed at 10 %. The target country is the largest trading partner in the United States.
China’s imposition will still be effective on Tuesday. But on Monday, leaders in Trump, Mexico and Canada announced that US neighbors agreed to deploy the US president by promoting border security and fighting drug trafficking. In Mexico, President Claudia Shane Baum has especially promised to deploy 10,000 defense members on the US-Mexican border.
Trump’s customs tariffs will be reached in the US market. Some names: Canadian petroleum and wood, plastics in China, textiles and computer chips. Mexico’s tariffs can add the cost of produced agricultural products, clothing, alcohol and auto parts.
Trump’s original order did not include an exception to US importers.
If you do not reach permanent transactions, if you emphasize the potential impact, Canada offers more than 4.3 million barrels of oil a day to the United States.
According to the US Energy Intelligence Service, the United States tends to consume about 20 million barrels a day. We have produced about 13.2 million barrels in Korea every day.
Trump said that these charges are about immigration and drugs.
The president often talked about the US trade deficit for decades before entering politics. He blasted international trade transactions and sweared the steady flow of manufacturing jobs from the United States to another.
But he turned his latest action as a leverage for immigration and drugs. Trump criticizes three US partners who are not enough to prevent Pentanil’s flow to the US market. He criticizes Mexico and crosses the US border to Canada on the influx of immigrants.
After the early weekend announcement, Trump said, “It is my duty to ensure the safety of everyone.
Canada, China and Mexico responded quickly
Trump’s command included a promise that a US trading partner would escalate the tariff if he received his response. The threat did not stop quickly.
Before they talked to Trump on Monday, Shane Baum ordered retaliation tariffs, and Canadian Prime Minister Justin Truddo said 25 percent of tariffs would be up to $ 155 billion in US imports.
Trudeau urged Canadians to “select Canadian products” when shopping, and urged the boycott of American products effectively. Regionally, many premiere in Canada said it will remove the US alcohol brand from the government store shelves.
On Tuesday, China’s Commerce Department announced that it will provide 15 %of tariffs on coal and liquefied natural gas products and 10 %of tariffs on crude oil, agricultural machinery and large scale, as well as the US response tariffs on various products. Displacement car.
Also, on Tuesday, the National Management Bureau of China’s market regulation said it is investigating Google on suspicion of violating monopoly law.
Previously, the ministry said it would complain about the World Trade Organization for “wrong practices in the United States.” However, the WTO appeal procedure has been steamed in recent years, as the US administration recently blocked the judge’s promise.
The WTO spokesman said on Monday that member states did not officially take action against the US.
Meanwhile, short -term charges between Trump and nearby respondents may not be suspended.
Consumers can see the effect even if a company pays tariffs.
The final line consumers do not directly pay tariffs. All companies that are foreign -based exporters or US -based importers that are transporting products across borders. However, this adds to the total cost of getting a product at the final retail store, and each player in this process should raise the price when facing a new border obligation.
Gregory DACO, the chief economist of tax and consulting firm EY, will increase the inflation, which is 2.9 %per year at 2.9 %per year in December this year. DACO expects that the US economy, an increase of 2.8 % last year, will decrease by 1.5 % this year and 2.1 % by 2026.
Yale’s budget laboratory estimates that Trump’s tariffs will cost an average US home from $ 1,000 to $ 1,200 in annual purchasing power.
These estimates are estimated to be included in the tariffs, including Mexico and Canada.
This effect also reaches the product claimed by “made in the United States”. Sometimes the label means that the product has been assembled or completed differently in the US facility, but it still contains raw materials, parts or packaging elsewhere.
And as Trump often said during the campaign, the energy cost of transportation in the supply chain also leads to consumer prices.
Considering Canada’s share of US energy supply, the tariffs of the northern US border will increase gas prices, especially in the midwest where Canadian oil oil is refined.
Trump has changed his adjustment to the consumer’s outcome.
Trump has swept and fantastic promises to the US economy.
He promised to “immediately” the food price. Sometimes he said, “1st day.” He said he would “resolve” the rising housing shortages, rents and new housing construction costs. He invited American votes to repeatedly ruin the BIDEN administration and frustrated more for higher living expenses.
In an interview with Fox News Channel’s “SUNDAY MONING FUTURES,” Trump insisted that Trump would offer more “more collective wages for US workers.”
Trump is now withdrawing that claim.
Trump wrote on social media on Sunday morning. “But we will make the United States great again, and it is worth the price to pay.”
