What do Trump’s tariffs mean for Canada, Mexico?

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WASHINGTON: The United States President Donald Trump’s move to slap revenue on Canada and Mexico is ready to affect supply chains for widespread products of jack -up costing industries.

Trump called for emergency economic powers in imposing taxes on Canada, Mexico and China, and argued that they had failed to stop illegal immigrants and drug flow in the United States.

Under the latest announcement, Chinese goods faced 10 % additional tariffs.

Meanwhile, Washington’s imports from both neighboring countries contained nearly $ 900 billion worth of goods by 2023 as the supply lines are deeply integrated between the three countries involved in the trade deal – however, fresh revenue business at a distance Will create complications for them. Or more countries.

Analysts expect Trump’s 25 % of Trump’s automobile and electronics sectors across Canada and Mexico.

Although Canada’s energy exports are 10 % lower, it is still a high mark because the United States has not previously imposed revenue on Canadian oil imports.

There is also a calculation of important US agriculture imports in Mexico and Canada, which means that duties can increase popular food prices like Aukados and tomatoes.

In addition, analysts have said that US prices on Canada and Mexico’s imports cannot be compatible with the US Mexico-Canada Treaty (USMCA), a trade deal Trump’s first presidential term It happened during.

Some even expected that Trump’s posting could be a way to get the upper hand before the 2026 deadline for Washington to review the USMCA.

Canada

According to Statistics Canada, about 80 % of Canada’s exports go to the United States, costing $ 410 billion.

These Levies will severely hit Canadian vehicles and energy industries, provided they represent 40 % of Canada’s exports to the United States.

Energy exports include natural gas, as well as crude oil and wallets.

Auto Sector in Ontario – is the most populous province in the country – faces special challenges.

The reason is that “different parts of the products cross many times before eliminating a finished product,” in a research note, Robert Kokak said at the Bank of Montreal.

The United States also imports construction goods from Canada, which means that revenue can increase housing costs.

Home makers need more than 70 % of the most important materials – Softwood Lamber and Gypsum – Canada and Mexico, said Carl Harris, chairman of the National Association of Home Builders.

“Tackles on wood and other buildings increase construction costs and discourage new growth,” he said.

Mexico

According to the National Institute of Statistics, Mexico’s exports to the United States represented 84 % of the goods sold to the world last year.

Its quantity is more than $ 510 billion.

Along with the sector of electronics and machines, vehicles and parts of the auto industry will have the most likely impact.

Capital Economics analysts say they send half of their production to the United States.

The latest 25 % of the revenue will also affect sectors like eating.

According to the US Department of Agriculture, Mexico provided 63 % of US vegetable imports in 2023 and US fruits and nut imports.

More than 80 % of Americans come from Aukado Mexico – which means that more import costs can increase prices of commodities like Guakamol.

Possible implications

Economists have warned that heavy US prices – and revenge measures – can put the economies of Canada and Mexico into recession, while the United States will also face the dangers of reputation.

“The taxes send a clear message, which reinforces Trump’s first position, while using trade as a geopolitical tool,” Gregory bandits of EYi told AFP.

He said the markets would see it as a political uncertainty, while investors make inflation pressure and supply chain to disrupt China.

Mexican President Claudia Shenbam has already announced that his country will impose retaliation.

“Mexico and Canada can challenge the move under USMCA, while China can counter target sanctions,” said Diko.

He added that a major concern was that the situation could increase in long and wider conflicts.