Palm Beach, Fla. – New trade penalty against Canada, Mexico and China that President Donald Trump has planned to implement on Saturday, which represents an aggressive initial step against the three largest trading partners in the US, but high inflation and global economy At the risk of possible disruption for.
In Trump’s view, 25% tariffs against two North American colleagues and 10% tax on import from Washington’s main economic rival are a way to throw around the United States to re -shape the world. .
“You see the power of tariffs,” Trump told reporters on Friday. “No one can compete with us because we have the largest piggy bank ever.”
The Republican President is imposing a major political condition that their actions will not spoil inflation, cause financial afterchox that can destabilize the economy worldwide or incite the voter backlash. In a comprehensive survey of voters in last year’s election, AP Votekast found that the US was divided into support of tariffs.
It is possible that tariffs can be short -lived if Canada and Mexico can reach a deal with trump to address illegal immigration and phentanel smuggling more aggressively. Trump’s move against China is also linked to Fantenal and comes at the top of the existing import taxes.
Trump is honoring the promises made in the 2024 White House campaign at the core of his economic and national security philosophy, although Trump’s colleagues played the threat of high import taxes only as a strategy to negotiate.
The President is preparing more import taxes in the indication that the tariff will be a part of his second term. On Friday, they mentioned imported computer chips, steel, oil and natural gas, as well as copper, drug drugs and against imports from the European Union – which essentially pits the US against most of the global economy Can
Trump’s intentions reacted a rapidly from the financial markets, with the S&P500 stock index slipped after his announcement on Friday.
It is not clear how tariffs can affect business investment that Trump said that corporate tax rates will be due to their plan to cut rates and remove rules. Tariffs increase prices for consumers and businesses by making them more expensive to bring foreign goods.
Many voters turned to Trump in the November election, on the belief that he could better handle the inflation under the Democratic President who Biden. But the expectations of inflation are crawling upwards in the Index of the Consumer Affairs of the University of Michigan University as respondents are expected to increase prices by 3.3%. This will be higher than the actual 2.9% annual inflation rate in the Consumer Price Index of December.
Trump has said that the government should increase its revenue more than the tariff, as was done in 1913 before being part of the income tax. He claims that in contrast, despite the economic evidence, the US was in its richest in the 1890s under President William McKinley.
“We were the richest country in the world,” Trump said on Friday. “We were a tariff country.”
Trump, who desires the US to remake the US using a model of McCinley, is using a real -time, which leads to an economist high prices warning tariffs. While in his first term, Tariff did not increase the overall inflation meaningfully, he is now looking at the tariff on a large scale that can increase prices if they are eliminating policies.
Trump loves an Ohione elected President McCinley in 1896 and 1900 in “Tariff Sheriff”.
Brad Seser, a senior partner at the Council on Foreign Relations, said on the social media site X “Tariff” If there will be a continuous, a large -scale shock – a very big step at a week’s end that Trump gave all his business action compared to all his business action Was the first term. ”
Setsar said that without discounts, tariffs on China could increase the price of iPhones, which the corporate America with Trump has a power corporate. Apple CEO Tim Cook attended Trump’s inauguration last month.
Recent research on Trump’s various tariff options by a team of economists suggested that the business penalty would increase on growth in Canada, Mexico, China and America, but economists of a Cornell University, who work on research, said that said that said that The membrane, the fallout will be felt more in Canada and Mexico due to their dependence on the US market.
Canadian Prime Minister Justin Trudeau told Canadian people that they could face further difficult times, but Ottawa was designed to respond with ventilative tariffs when needed and would be self-disturbed.
Trudeau stated that Canada CDN is addressing Trump’s call on border security by implementing CDN $ 1.3 billion (US $ 90 million) limit plan which includes helicopters, new canine teams and imaging tools.
Mexico President Claudia Shinbam has insisted that his country has worked to reduce illegal trade in an illegal border and Fantenal. While he has insisted on the ongoing dialogue as Trump first floated tariffs in November, he has said that Mexico is also ready to respond.
In Mexico, there is “Plan A, Plan B, Plan C that decides the United States Government,” he said.
Trump still has to increase the legal loan authority of the government through a budget, tax deduction and Congress. The result of their tariff plans can strengthen their hand or weaken it.
Democrats are sponsoring laws that will take away the President of its ability to impose tariffs without the approval of the Congress. But this is unlikely to build a headway in a Republican-controlled House and Senate.
“If the tariffs become effective at the end of this week, they will harm our relationship with our colleagues and increase the cost for hundreds of dollars working families a year,” said Cen Chris Cons, D-Del. “Congress needs to prevent it from reworning.”