President Donald Trump ordered a tariff on China along with American neighbors Canada and Mexico starting on Tuesday. Canada and Mexico quickly announced a repayment tariff, while China stated that it would take “essential counselors”.
The business between North American nations is now more than China, a total of $ 1.8 trillion in 2023. This is more than $ 643 billion in commerce that the US did with China the same year.
Trump declared an economic emergency Saturday to keep 10% of duties on all imports from China and 25% of duties of 25% on imports from Mexico and Canada. Energy imported from Canada, including oil, natural gas and electricity, will be reduced by 10% tax.
The following are some imported items whose prices can be the first hit:
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 Scott Lincol, a business analyst at the Libeterian Cato Institute. “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. ,
Among the tariffs on Canadian oil imports, Lincicom said, “How does the cat move?” 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.
Trouble in Margitville
The tariff will increase the price for a glass enhancing a glass of tuilla or Canadian whiskey.
In 2023, the US imported a $ 4.6 billion twiline and a table worth $ 108 million from Mexico, according to a business group’s Distilled Spirits Council. The US imported Canadian souls worth $ 537 million, including whiskey’s $ 202.5 million value.
The council said that Canada and Mexico also had the second and third largest importers of American spirits in 2023, the council said behind the European Union.
The council said that the US is already facing a potentially devastating 50% tariff on the US whiskey by the European Union, which is scheduled to begin in March. Applying tariffs on Mexico and Canada can lead to even more reputation on the industry.
Council President and CEO Chris Swongar said that he appreciates the goal of protecting American jobs. But Tequila and Canadian whiskey – like Kentki bombon – are designated as specific products that can only be made in their original country.
“At the end of the day, tariffs on the products of souls from our neighbors to north and south are going to hurt American consumers and lead to job loss in the American hospitality industry, such as these business continues their long recovery from epidemic Keep, “Swargar said.
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 -more than 63% of united 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 in
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.”