President Donald Trump's tariff for Canada and Mexico caused panic and condemnation of the best trading partners in the United States, who said that the fees would destroy the economy in North America and destroy an 80 -year agreement.
The reaction of politicians, business leaders and commercial associations in all three countries was with disbelief and warning Definitions It would bring inflation, supply chain disorder and wide function losses.
On Saturday afternoon, Donald Trump signed an executive order imposing a 25 percent comprehensive tariff on Canadian and Mexican commodities that start on Tuesday and 10 percent of the customs tariff. It also imposed an additional 10 percent tariff on goods from China.
Trump said the tax will be placed on the goods from Canada and Mexico for their “official” for promises to stop drug flows and illegal immigration to the United States.
Mexico President Claudia Shinbum announced definitions of profitable American goods, while Canadian Prime Minister Justin Trudeau was expected to do the same later on Saturday.
The new commercial barriers will slow down and accelerate inflation in all three countries during the next few years, with the assessment of the largest shocks for Mexico and Canada, and the economists are estimated at the Peterson Institute for International Economy.
They will also go to decades of deepening integration in North America. Mexico and Canada send more than three quarters of their exports to the United States, supported by a three -way trade agreement, USMCA, which occurred during the last Trump presidency.
“The definitions will significantly increase the cost of everything for everyone: every day these definitions fall, they hurt families, societies and companies.”
American companies that have operations throughout the region will be affected. The American Chamber of Commerce said the definitions will disrupt supply chains.
Trump has long focused his anger on the southern American border with Mexico, but he made it clear in the executive matter that he saw Canada as part of the problem.
“Criminal networks are involved in human trafficking and smuggling, which allows illegal immigration through our northern borders,” says the executive order.
Kafi Deljado of the Canada Institute at the Wilson Center in Washington, DC, said that the United States has never told Canada about the measures it should take on the northern border.
“The president can only implement definitions through the Economic Forces Law in International Emergency) in response to an unusual and unusual threat.” Even if the White House believes that its trade deficit with Canada is unfair, this does not pose an unusual threat; “The crisis is on the northern border, as they describe it,” he said.
Leaders in the private sector in Mexico said that there is a deep panic and nervousness after Trump's announcement. Many were hoping that the country would benefit from Trump's second term, with a little belief that he would follow his threats.
Pedro Casas Atest, director of the American Chamber of Commerce in Mexico, said the definitions were a step back to a relationship that was built for decades.
“Companies and consumers in the three economies will suffer from consequences if this procedure is not reversed; (this means A) high costs of producers and exporters, loss of jobs, inflation, and less purchase strength for our families.”
Mexico's economy is already slowing and is expected to fall into the recession if customs duties are imposed for a large period. Tif Maclim, the governor of Canada Bank, said that the American definitions are likely to put Canada in a stagnation.
“The only winners of the imposition of customs duties against Mexico and Canada by the United States are the main competitors in North America,” said Kenneth Smith, a former Mexican trade negotiator.
Mexicans were shocked by the language used in the White House newspaper on the definitions, which directly accuses the Shinbom government of the presence of an “unbearable alliance” with drug gangs in the country. It was not clear what Mexico could do to remove definitions.
Since Trump was elected and the tariff began in November, Canadian and Mexican delegations have been trying to persuade the president that such measures will harm the American economy as well.
Some of Trump's Republican colleagues also raised concerns about the president's announcing, as Canada highlighted their main commercial partner.
John Lilin, a partner in the Independent Economics, a consultant and former economist in the Organization for Economic Cooperation and Development, said the main result of definitions is inflation, as all countries, including the United States, are likely to be harmed, said John Lilin, a partner in Independent Economics, a former economist in the Organization for Economic Cooperation and Development.
He said: “The 80 -year -old stability era in the rules and behavior of economic and financial relations between countries has ended today.”
