Trump’s tariffs on Canada, Mexico and China: will they spark a trade war? | Trump administration
Donald Trump pledged Imposing a comprehensive tariff on imports From Canada, Mexico and China this weekend.
There will be 25 % of the customs tariffs on the goods coming to the United States of Canada and Mexico and 10 % on imports from China.
Here is everything you need to know about the definitions, and what can happen with Trump’s planned executive order to enforce it.
What is a tariff?
The tariff is a tax on imports, or foreign goods.
Who pays definitions on American imports?
American companies that import goods from abroad are paid. If the American auto manufacturer imports part of Mexico, it will have to pay a tariff once it reaches the country.
Why Trump imposes definitions?
Speaking in the Oval Office, Trump told the media that there are several reasons for his decision: “The first number is the people who poured into our country, very terrible and much … the number of two drugs, fentianils and everything else came in the country … and the third number is the subsidies The huge we offer to Canada and Mexico on the deficit. “
Does this mean the beginning of a global trade war?
This depends on who you ask. After Trump announced details of the latest customs tariff, Brian Lanza, the chief adviser in his 2024 presidential campaign, told BBC Radio 4 today: “No … this is the threat to negotiation.”
However, the president also said that he is considering a tariff for European goods in an attempt to reflect the trade deficit, so some analysts feared that he will rise to a commercial war that somewhat as countries whose exporters are subject to the United States have imports in revenge.
When Trump put definitions on Chinese imports the last time he was in the White House, Beijing placed definitions on American imports, including soy and corn beans. This step ultimately hurts American farmers, who relied on business with China. Without the approval of Congress, Trump ended in saving farmers, whose export revenues decreased by at least 10 billion dollars after the definitions were imposed.
The Council of Foreign Relations, a company that thinks of the United States, has since then calculated Up to 92 % of the revenues collected from the customs tariffs on Chinese imports were spent on poles for farmers.
So who wins and who loses?
In the end, it is the consumer who loses the definitions because they will definitely feel the effect by increasing prices.
Does Trump need Congress approval to impose definitions?
Republicans have a majority in the House of Representatives and the Senate, which means that Trump has a lot of authority in Congress to pass legislation.
But the president also has the authority to impose a tariff without the approval of Congress when it comes to national security, protecting American industries or in the case of a “national emergency” – very wide reasons that would make a legal issue against definitions in which it is difficult to fight.
The way the customs tariff works, in Trump’s minds, is that it will motivate American companies to transport their home from abroad.
“All you have to do is build your factory in the United States, and you have no tariff,” Trump said, a few weeks before the elections.
But exit from the ecosystems of complex global industrialization is almost impossible for many companies. It takes years to create and operate a factory, so even if the company theoretically wants to enhance its local manufacturing to avoid customs tariffs, it is possible that the term Trump will end with the time it was ready.
