US President Donald Trump signed an executive order imposing new tariffs on imports from Canada, Mexico and China, the three largest trading partners of the United States. This decision, according to Trump, is a response to the role of these countries in facilitating illegal immigration and drug entry into the United States. About this reported edition of The Washington Post.
Trump has signed three executive orders officially launching these trade measures as part of his second term. From now on, American importers are forced to pay a 25% tariff on goods from Canada and Mexico and a 10% tariff on products from China.
Previously, most goods from Canada and Mexico entered the U.S. duty-free thanks to a trade deal signed by Trump during his first term as president. In addition, Chinese products were already subject to tariffs of up to 25%, and new tariff restrictions will be added to these taxes. Among other things, energy products, including oil from Canada, are now also subject to a 10% tariff.
During a speech on Friday, Trump explained his decision by fighting illegal immigration and the growing threat of drug trafficking.
“We suffer because of the millions of criminals who come to our country – prisoners, people from all over the world. They come through Mexico and even through Canada.” he said.
In addition, the president accused China of supplying fentanyl through the territory of Mexico and Canada, which he said caused a serious drug addiction crisis in the United States. Trump also criticized the deficit in US foreign trade with these countries, calling it unfair for the American economy.
The officially stated purpose of introducing new tariffs is withincreased production within the US. Trump explained that the tariffs are designed to encourage companies to move production to the United States, creating new jobs for Americans.
However, economists are skeptical about the effectiveness of such an approach. During Trump’s first term, manufacturing employment did increase by 462,000 jobs, but stalled a year before the pandemic.
In total, US companies and consumers buy $1.3 trillion worth of goods from Canada, Mexico and China each year. The list includes food, electronics, cars, parts and clothing.
The introduction of tariffs on such goods could significantly disrupt regional supply chains that have been formed over the past 30 years.
The automotive industry, which is heavily dependent on the supply of components from Canada and Mexico, may take the biggest hit from the new customs restrictions.
Experts warn that rising logistics and manufacturing costs could lead to widespread economic chaos in the industry, driving up car prices and reducing investment in manufacturing capacity.
