US President Donald Trump says to announce the tariffs for all the imports of steel and aluminum in the US if it redesigue America’s trade relations with the whole world.
This step can have a special impact on neighboring Canada, which is the largest aluminum supplier in the US. Trump also threatened to submit tariffs for a later date on other Canada products as well as in Mexico.
He has already introduced a collection of 10% on all the products that are from China – which responded with its measures.
The US president states that these import taxes are necessary to help the US economy and “protect” the country from illegal immigration and drug flow. Economists say they can push for Americans.
What are the tariffs and how do they work?
Tariffs are taxes that are charged for goods imported from other countries.
Companies importing goods from the border are paying tariffs of the US government.
Trump submitted a 10% tariff for all goods from China. Thus, the product that costs $ 10 will have an extra fee for $ 1.
Initially, the president stated that a 25% tariff on Canada and Mexico goods would be overlaid, but later he agreed to stop them after both countries agreed to increase border security.
Charging the percentage of product value is the most common tariff. Another type imposes a fixed figure on imports, regardless of their value.
Why does Trump use tariffs?
Trump fulfills the promise of import duties against some closest trading partners in America.
He claims that tariffs will increase US production and protect jobs – for example, in the US capital – as well as raising tax revenues and economics growth.
He also sought to justify the metals tariffs – which he also presented during his first term – as a issue of national security.
Trump also says he uses tariffs to “fight Beach Fentonil”, a powerful drug that causes tens of thousands of deaths from overdose in the United States every year.
Its administration says that the chemicals used to make drugs come from China, while Mexican gangs supply it illegally and have fentanyl laboratories in Canada.
Canada Prime Minister Justin Trudu said he is less than 1% of Fentanyl, who is part of his country.
What happens to China, Canada and Mexico?
Last year, China, Mexico and Canada made up more than 40% of the US imports, making them the most valuable traded partners.
China
A 10% charge for all goods imported from China to the United States came into force on February 4.
Beijing avenged his own tariffs that came into force on February 10. These include 15% of the US coal and liquefied natural gas products, as well as 10% raw oil, agricultural machinery and large engine vehicles.
China has repeatedly expressed its confrontation with a new secret trade war that developed between the two countries during the Trump’s first presidency.
Canada
Trump has stopped the suspension of 25% on all goods that were part of Canada for 30 days – which was supposed to start on February 4.
Canada also stopped its own $ 255 billion retallation tariff ($ 107 billion; £ 86 billion) of US imports.
In exchange for a pause Trump, Prime Minister Canada Justin Truda said Canada implements a $ 1.3 billion border plan to add “new shredders, technologies and staff to the border”, as well as “increasing resources to stop Fentanyl’s flow. “
Most of the border security plan was already announced in December.
Trump said the delay will allow the US to see, “whether the final economic deal with Canada could be reached.”
Mexico
The proposed 25% of the tariffs against Mexico were also postponed, as well as Mexico against US goods.
Mexico President Claudia Sheinbaum agreed to send 10,000 members of the National Guard to the US Mexican border to “prevent drug trading, in particular Fentonil.”
President Sheinbaum said the United States, in turn, agreed to increase mexico prevention mexico.
What products will be affected?
During the previous time, Trump in office used less restrictive tariffs for China. This time, the tariffs seem to apply to all goods from China.
If mexica and Canada are the measures to go forward, it is expected that a number of items will become more expensive.
Car production can carry the main effect of tariffs.
The spare parts of the vehicles cross the US, Mexican and Canadian borders several times before the vehicle is fully collected.
The average car price in the United States can increase by $ 3,000 from -in import taxes, the TD Economics Financial Analyst.
Other Mexico goods that may affect include fruits, vegetables, perfume and beer.
Canadian goods such as steel, lumber, cereals and potatoes can also get more expensive for US consumers.
Canadian energy will be raised by 10% instead of 25%.
Will the UK and Europe have to pay tariffs?
Earlier, Trump said the BBC that the UK was acting “on the border”, not giving further information, but suggested that the decision could be “developed”.
UK business secretary Jonathan Reynolds said UK should be excluded from tariffs as the US exported more products to the UK than imported.
The UK exports pharmaceutical products, cars and scientific tools to the United States.
Trump also stated that he could impose tariffs at the EU “pretty quickly” because “they take virtually nothing (from the US) and we take everything from them.”
Last year, the US had a $ 213 billion trade deficit from the EU – which Trump called “atrocity”.
The EU has stated that it will “respond severely” to any tariffs. Harley Davidson, American companies that produces motorcycles and whiskey -listing plants such as Jack Daniel, previously encountered tariffs at the EU.
Do inflation tariffs cause?
Economists warn that tariffs are likely to raise US consumer prices.
For example, sellers can increase the price of goods they import when they are forced to pay higher duties.
From 2018 to 2023, the tariffs for imported washing machines increased, as the official statistics increased by 34%before falling as soon as the tariffs ended.
Some experts believe that these new tariffs may push a wider trade war and worsen inflation.
The Capital Economy has said the annual inflation rate could increase from 2.9% to 4% of recently announced tariffs.
