Tariff that President Donald Trump plans to slap imports from Canada and Mexico as soon as it can increase the price of everything from weekend gasoline and pickup trucks to super bowl party Guacol Dubki.
Trump’s tariff threatened to blow up the trade agreement with US neighbors in his first term. His US-Maxico-Canada Agreement- “The most fair, most balanced and beneficial trade agreement.” We have ever signed in the law, “Trump once declared-was considered to predict in North American trade, which caused businesses Got confidence to invest.
There are some imported items here that can be hit first.
A ‘grenade’ looted in auto production
For decades, auto companies have created supply chains that cross the borders of the United States, Mexico and Canada. According to S&P Global Mobility, one of the five cars sold in the United States and one of the light trucks was made in Canada or Mexico. In 2023, the United States imported $ 69 billion cars and light trucks from Mexico – more than any other country – and $ 37 billion from Canada. Another $ 78 billion in auto parts came from Mexico and $ 20 billion from Canada. For example, the engine in the Ford F-Series pickup and the iconic Mustang Sports Coup comes from Canada.
“You have engine and car seats and other things that cross the border several times before entering a finished vehicle,” said Lincicom of Cato. “You have the American parts going to Mexico in vehicles that are later sent to the United States.
“You throw 25% tariffs in all that, and this is just a grenade.”
In a report on Tuesday, S&P Global Mobility stated that “importers are likely to pass the most, if not all, this (cost) grows for consumers.” TD notes that the average American car notes. Prices can grow up to $ 3,000 – it is one in one.
High prices on the pump
Canada is the largest foreign supplier of America’s crude oil so far. From January to November last year, Canada sent raw raw raw raw raw, numbers 2 to $ 11 billion from Mexico.
For many American refineries, there are not much options. Canada “produces the type of crude oil that is designed to process American refineries,” Lincicom said. “It is a heavy crude. All fracting and all oils and gas we make here in the United States – or most of it – is a mild raw that does not process lots of American refineries, especially in midwests. ,
Trump said on Thursday that he has not yet decided to include Canadian and Mexico oil in the tariff which are still planning on Saturday.
If he imports tax Canadian oil, Linsicom said, “How does the cat shake?” My guess is that it shakes only through high gas prices, especially in midwests. TD “TD Economics figures that Trump’s tariffs can increase the price of American gasoline from 30 cents to 70 cents one gallon.
Expensive Avocado – Just in Time for Super Bowl
For American consumers, a business war with Canada and Mexico can still be painful for American consumers. In 2023, the US bought more than $ 45 billion in agricultural products from Mexico – including 63% imported vegetables and 47% fruits and nuts. Farm imports from Canada increased to $ 40 billion. 25% can increase tariff prices.
“Grocery stores actually work on small margins,” Linsicom said. “They can’t eat tariffs … especially when you talk about things like avocados that originally all of them – 90% – Mexico. Talking
American farmers are also nervous that Canada and Mexico will retaliate by slapping tariffs on American products such as soybeans and corn. This happened in Trump administration. China and other tariffs of Trump Tariff came back after targeting the President’s supporters in rural America. Exports of soybean and other agricultural products fell, so Trump spent billions of American taxpayers money for reimbursement of farmers for lost sale.
“President Trump was good as his word,” said Mark Mac, a central city, Nebraska, farmer, who grows corn, soybean, popcorn and raise the hog. “It took the sting out of it. This is to make sure. “We will receive our money from the market,” said “We will receive our money from the market.” “It is not very good to investigate the government.”