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After forcing Colombia to accept the deportees threatening a 25%tariff, President Donald Trump is preparing the same movement against Canada and Mexico.
The president of the United States, Donald Trump. (Reuters)
After having forced Colombia to accept the deportees threatening a 25%tariff, President Donald Trump is preparing the same movement against Canada and Mexico as soon as Saturday.
But this time, bets are higher and many economists inspect the possible damage doubting that Trump feels comfortable with what they say they would be self -inflicted injuries of the rates.
“The potential of such considerable economic impacts should act as sufficient deterrence so that Trump does not end up implementing these higher rates,” said Matthew Martin, a senior economist of the United States of the Oxford Economics consultant.
Trump has repeatedly insisted that tariffs approach Canada and Mexico, although both countries seek to address their declared concerns about illegal border crossings and the smuggling of the fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to “respect” the United States.
“We are going to immediately install massive tariffs,” Trump said in a speech on Monday, adding: “Colombia is traditionally a very, very strong country,” but retreated instead of facing import taxes.
Multiple economic analyzes show that universal tariffs against Canada and Mexico run the risk of more inflation and economic slowdown. It is a much larger play than Trump’s movements against Colombia, which represents approximately 0.5% of American imports. On the contrary, almost 30% of all American imports come from Canada and Mexico, amplifying the risk that tariffs can feed inflation and undermine Trump’s promises to control prices.
The Trump director of the National Economic Council of the White House, Kevin Hasett, dismissed these concerns. He said that skeptical analysis of tariffs do not look at all Trump’s promises.
“When people trying to panic for the commercial policy of President Trump simulate what he is going to do, they do not take into account all other policies,” said Hassett in a Monday interview on Fox’s business network. “So President Trump Trump is drill, baby, drill and deregulation and tax cuts and reduce spending. “
After Trump’s initial threat of 25% tariffs in November, Mexican president Claudia Sheinbaum suggested that Mexico could retaliate with own tariffs. Since then, it has been more measure, choosing emphasizing the strong bilateral relationship and the will to participate in the dialogue as the number of arrests at the border between the United States and Mexico has sunk.
Sheinbaum said in November that drugs were a problem from the United States, but in December the Mexican army confiscated more than a ton of fentanyl pills in two raids, calling it the greatest capture of synthetic opioids in the history of Mexico.
On Monday, Sheinbaum applauded the agreement reached by the Trump and Colombia administration.
“I think the important thing, as I said the first day, is to always act with a great head, defending the sovereignty of each country and respect between nations and peoples,” he said.
The main Canadian ministers said last week that Canada was prepared to retaliate if Trump imposed import taxes, even when Canadian Foreign Minister Mélanie Joly said that “they will continue working on the prevention of tariffs.” The work theory in Canada seems to be ready for anything that the president of the United States could do so.
On Monday, the Economics Division of the Insurance Company throughout the country estimated that Trump’s rates in Canada and Mexico would increase inflation by up to 0.5 percentage points and reduce growth by 0.7 percentage points.
The analysis pointed out that “explained possible retaliation tariffs of Canada or Mexico, which could amplify the harmful impact on inflation and growth of GDP.”
Trump has made the lowest prices in gasoline one of his key strategies to address inflation, but tariffs in Canada could increase prices in the pump unless Trump creates sizes in his plan.
“For example, 60% of oil and gas imports come from Canada,” said Oxford Economics’ Martin. “A 25% tariff would lead to higher prices of gasoline, diesel and oil products for households and companies, especially in the west and Rocky mountain regions, where refineries are connected to Canada by pipe.”
The PWC Fiscal Services firm analyzed the possible impact of 25% rates and discovered that companies that import from Canada could have to pay $ 106 billion more annually in import taxes and those that import from Mexico could be due $ 131 thousand Millions more.
“When we think of the most affected industries, we think about transport and car,” said Chris Desmond, director of PWC’s international commercial practice. “The number of companies that have operations in Mexico and Canada in that industry with components and parts so good, even the planes, that will be a great success.”
Desmond estimates that the taxes paid on imports in the transport sector of all Trump tariff plans, which include new taxes on China and other countries, could increase from $ 4 billion a year to $ 68 billion. It is not clear how companies would absorb these costs or possibly would pass them to consumers.
None of those analyzes is at the forefront of Trump’s public thoughts. His argument is that tariffs would make the United States rich in protecting it from competition and safer because they could be tools to force other countries to reduce illegal immigration.
“The tariffs, I told them, the most beautiful word in the dictionary,” Trump said Monday as he remembered his campaign speeches praising import taxes. He recalled in that speech how he was criticized for praising the term, which led him to conclude that the rate is, in fact, the fourth most beautiful word after “God, love, religion.”
(This story has not been edited by News18 staff and is published from a FEED -Associated Press Union News Agency)
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