Now stock markets are down as President Trump’s long-threatened tariffs against Canada and Mexico come into force. The White House says the two countries are not doing enough to tackle migration and drug trafficking imports from Canada and Mexico. . America’s biggest trading partners will now be taxed at 25% or 10% for Canadian energy products. The U.S. is also adding new tariffs on imports from China, raising them up 20%. 20 of these factories in Mexico produce for the U.S. market, making things like electronic key fob makers.
The border is a booming industry shaped by more than three decades of free trade. Manufacturers in Mexico have become a part of the supply chain for many U.S. companies. Because of this, some believe the trade ties they’ve built are strong enough to withstand Trump’s tariffs. fsThe thing is that trade between Canada, the United States and Mexico is very significant. This relationship has been established for years and cannot be changed overnight. It’ll be modified, and there is no possibility of eliminating it.
it Trump announced a 25% levy on the 7th of February and then paused them after both countries agreed to meet his demands to secure the border and combat drug traffic trafficking. and Mexico were quick to act, raiding drug lords, reducing the number of migrants and extending the wall along Mexico’s border but Trump said it still wasn’t enough. has also turned up the press obeying. the last week, he threatened an additional 10% tariff on top of the existing 10% reimpose on all goods coming in from.
Markets tumble as US slaps tariffs on Canada, Mexico
China, now all right, let’s get more from Las, who joins me now from Business. Welcome, come. Sol. So let’s start with the fact that, as you know, many US companies have factories in Canada, Chin well. l. mean, is this going to impact American businesses and its economy? Well, it’s highly disruptive to them because it makes things more expensive, of course, on all sides and for all partners in the game. An. And we just want to make it more concrete and look at a couple of companies there and American.
companies in Mexico that are, or, of course, companies. General Motors is there. Ford is there but also Intel as a chipmaker. re. These are companies that at some point left the United States, partially moved into Mexico, not only because it was cheap but also because they had staff in the US and low unemployment so it was really hard to get the workforce there so they branched out. Of course, it comes back to haunt them right now and, uh, these.
Andon And say, Order American carmakers. They are really companies on the other side of the border, and just bringing them back to the US, they’re going to have an added cost now of 25%, and that, of course, is exactly what President Trump wants. I think back to that one particular meeting he had at John Deere, that agricultural machine make
US markets tumble as Trump confirms tariffs on Canada
g hit hard. What about people? Because, I mean, essentially, aren’t consumers footing the bill here? Yes, of course consumers are, and now that goes back more, maybe from Mexico to China, as a good example here. Because, I mean, essentially, aren’t consumers footing the bill here? Yes, of course consumers are, and now that goes back more, maybe from Mexico to China, as a g.ood example here, because China, furniture, or apparel and that all gets more expensive and that is the crux here, President Trump, during
His campaign has proven over and over that he doesn’t seem to understand the concept of how tariffs work. He basically said, and. He basically said, and he , that China will pay the US government for selling goods in the country and that is, of course, complete nonsense. Hina is selling these products—let’s say these t-shirts or toys or furniture—to American customers but they just have to pay an extra tax of 10 or now 20% on top so consumers are the ones that are directly hit and it’s especially ironic.
Because the high cost of living talks about the cost of eggs, it’s basically the high cost of everything that was a main reason American voters were angry enough to elect President Trump. Alright, let’s talk about the response. Meantariffs always get a response. What have we seen so far from—yes, of course, we’re seeing counter tariffs right away. NATO has already announced that they’re going to hit us exports now with, uh, ah, a 25% counter tariff, which is obviously appropriate, but, uh, uh, uh, Justin Trudeau is going to go one step further. He.
China and Canada retaliate after Trump trade tariffs come
said that he is considering measures outside of just more tariffs and that could mean even stopping the import of American oil and gas. That would be pretty drastic measures but of course other countries are signalling Trump that they’re not kidding around with this either, right?? Let’s talk about the impact on the global economy because what you’re saying here, these are big responses. Theses. They are major. These will have.
a ripple effect, of course. It is disruptive to world trade even though we are now talking about three or four countries. is, ha, a large part of global trade happening between these countries, especially between the US and China. Of course, we’re talking about a trillion-dollar trade here. They’re talking about further threats that Trump has raised against the European Union. wants to put tariffs on EU goods as well but interestingly enough, U.S. companies German companies for example, already feel the pinch right now because of.
Of course, they’re also producing in Canada or in Mexico so they’re already involved so this is going into an all-out trade war and actually, it’s interesting. I just read a quote this morning from Warren Buffet, one of the richest men in the world in America. He calls this an act of war by Trump. On that note, we are going to have to leave it there. here.
