Donald Trump launched a barrage of definitions against Canada, Mexico and China on Saturday, as it launched a new global trade war.
The two countries have pledged to respond to their own tariffs, which controls the economic war that will be echoed in the markets in the coming weeks.
What did the United States declare and why?
Washington unveiled a 25 percent tariff on most imports from Canada and Mexico, and an additional 1 percent on imports from China. Canadian oil beaten at a rate of less than 10 percent. Duties will enter into force from Tuesday.
Trump said the procedures were in response to the “main threat” that migrants and drugs flow in the United States across its borders with Canada and Mexico.
China several years before the export of entities exporting fentanel to North America. But Chinese groups responded to charging the chemical ingredients – called Sects – to the Mexican Cartlat. Then the cartridge manufactures fentanel and sends it across the border, as it became the leading killer of the Americans between the ages of 18 and 45.
Beijing has agreed to take measures to stop the flow of spoles at a summit between Chinese President Xi Jinping and US President Joe Biden in San Francisco in 2023. Critics want China to do a lot.
On Saturday, Trump accused the Chinese Communist Party of supporting and motivating local companies to export fentanel and sects.
How did Canada, Mexico and China respond?
Canadian Prime Minister Justin Trudeau announced on Saturday evening a 25 percent revenge tariff for American goods, at a value of $ 155 billion ($ 107 billion).
He said that “long -term definitions” will strike us beer, wine, bourbon, fruits, fruit juices, perfumes, clothes, shoes, home appliances, sports equipment, wood and plastic.
He added that Ottawa was also studying “non -trivial measures” related to critical minerals, in conjunction with the provincial governments.
Mexico also announced that it will impose a retaliatory tariff on American goods without specifying the size or goals.
China has not yet clarified how it would respond to the procedures. Beijing said on Sunday that she “responds firmly and opposes this step” and will take “counter -measures necessary to defend their rights and issues.”
American companies have exported $ 763 billion of goods to the three countries in the first 11 months of 2024 – with 17 percent of the total exports to Canada, 16 percent to Mexico and 7 percent to China.
The President of Mexico Claudia Shinbom He alluded to revenge definitions late last year after Trump's initial threats. People familiar with the matter say that the country has prepared what you call the definitions “Carousel” where the products are targeted and suspended for several months at a time, aimed at Republican lawmakers.
During the 2018 conflict in the first period of Trump, Mexico targeted steel and agricultural products such as pork, apples and cheese.
What are the industries that will strike?
Car makers, food and construction producers-and each depend on largely on border trade-between industries that are likely to be more affected.
the American auto industryEspecially the traditional “three adults” of Ford, General Motors and Stellantis, spread manufacturing to all three countries on the continent. American car suppliers also make goods in Mexico, from seats to axes. About 16 percent of the US -made car is derived from the work done in Mexico or Canada.
Car makers who have operations in Mexico and Canada will face either cost absorption or price raising for consumers. Daniel Royceka, an analyst at Bernstein, said that the import tax could give a competitive boost to South Korean and Japanese car makers selling in the American market.
Food imports from Canada and Mexico will be severely affected. The United States imported more than $ 45 billion of agricultural products from Mexico in 2023, according to the US Department of Agriculture, including strawberries, berries, tomatoes and beef. Other $ 40 billion from Canada, including beef, pork, grains, potatoes and Canola.
Building materials will also face pressure, with about a third of soft wood used in the United States imported from Canada. Canada and Mexico together represent more than five US cement imports.
“A lot of increase in the costs of customs tariffs to American consumers will be transferred,” said James Knightley, the chief international economist in Engi.
What was excluded?
The Canadian oil industry spared the worst in the Trump tariff, as it was carved with a 10 percent imposition, as the White House sought to reduce the inflationary impact on American car drivers.
The United States relies heavily on raw imports to feed its refineries, with about 40 percent of refined crude in the country coming from abroad – from that, 60 percent of Canada and 11 percent of Mexico. There will be a significant rise in the cost of raw imports in the pump.
Chit Thompson, head of American fuel manufacturers and petrochemicals, the refining industry group, said he hoped to be a “quickly” deal to end all the customs tariffs on the industry “before consumers felt influenced.”
The Declaration of Saturday did not refer to the European Union, but Trump said the previous day that he was “absolutely” planning to target the bloc with new fees in the future. “We will do something very big with the European Union,” he said.
How long will this continue?
The White House said that the American definitions will remain in place “until the crisis (migration and drugs) is reduced.” But analysts said they tested the scope of the presidential forces and they are likely to face the appeal of the court.
Trump used the 1977 IEEPA Economic Forces Act for the application of definitions, which represents the first time that the law has been used to apply fees to countries.
“This step is not only an aggressive tariff in size and scale, but it is also an aggressive assertion of the president's authority to impose these definitions,” said Greta Bish, a partner at the law firm Wiley Ryan and a former commercial consultant in the United States government. “Once again, he dismantled a new ground and tests the limits of the commercial authorities delegated by Congress.”
Trump threatened to apply the wide customs tariff to Mexico in 2019 on immigration issues, round from IEPA, but in the end she did not use it. Richard Nixon introduced IEPA, trading with the enemy law of 1917, to implement the 10 percent definitions on commercial partners in the United States.
