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American tariffs enter into force and Mexico, Canada and China take reprisals with their own rates in the United States.

American tariffs enter into force and Mexico, Canada and China take reprisals with their own rates in the United States.

Washington (AP) – President Donald Trump launched a commercial war on Tuesday against the three largest shopping partners in the United States, causing immediate reprisals from Mexico, Canada and China and sending financial markets to a tail as the United States faced the threat of revived inflation and uncertainty paralyzed by business.

Just after midnight, Trump imposed taxes of 25%, or tariffs, Mexican and Canadian imports, although he limited the 10% tax in the Canadian energy. Trump also doubled the rate he slapped last month for Chinese products at 20%.

Beijing retaliates with tariffs of up to 15% in a wide range of US farm exports. It also extended the number of US companies subject to export controls and other restrictions in approximately two dozen.

The Canadian Prime Minister Justin Trudeau said that his country would bow in tariffs at more than $ 100 billion of US goods during 21 days.

“Today, the United States, launched a commercial war against Canada, its closet and ally partner, its friend of the closet. At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a liar murderous dictator. Make that make sense, ”said Trudeau.

Mexican President Claudia Sheinbaum said Mexico will answer to The new taxes with your own retaliation rates. Sheinbaum said he will announce the products that Mexico will point on Sunday in a public event in the central square of Mexico City, perhaps with the delay that indicates that Mexico still hopes to unwishly the commercial war expelled by Trump.

As the voters promised, the president of the United States is abandoning free trade policies that the United States followed for decades after World War II. Trump argues that open trade cost millions of factory jobs to the United States and that tariffs are the way to national prosperity. It rejects conventional economists who argue that protectionism is expensive and inefficient.

Import taxes are “a very powerful weapon that politicians have not used because they were dishonest, stupid or paid in some other way,” Trump said Monday at the White House. “And now we are using them.”

The Dartmouth College economist, Douglas Irwin, author of a history of History of Us Tariff of 2017, has calculated that Tuesday’s walks will raise the United States average rate from 2.4% to 10.5%, the highest level from the 1940s. “We are in a new era.”

American markets fell sharply on Monday After Trump said there was no space “for negotiations that could reduce rates. The actions were mostly lower on Tuesday after they entered into force.

According to estimates of the Yale University Budget Laboratory, Trump tariffs amount to a fiscal increase of approximately $ 1.4 trillions to $ 1.5 trillion in 10 years, a massive increase that would disproportionately affect low -income homes.

The Tariffs of Canada and Mexico were supposed to begin in February, but Trump agreed a 30 -day suspension to negotiate more with the two largest American business partners. The declared reason for tariffs is address drug trafficking And illegal immigration, and both countries say they have progressed in these issues. But Trump has also said that tariffs will only be reduced if the commercial imbalance of the United States closes, it is unlikely that a process in a political timeline will be resolved.

Tariffs can be shortly if the US economy suffers. But Trump could also impose more tariffs on the European Union, India, computer chips, cars and pharmaceutical drugs. The US president has injected disorienting volatility into the world economy, leaving him out of balance when people ask what he will do next.

“It is chaotic, especially compared to the way we saw rates launched in the first administration (Trump),” said Michael House, co -president of international commercial practice at the Perkins Coie law firm. “It’s unpredictable. We do not know, in fact, what the president will do. ”

Democratic legislators quickly criticized tariffs, and even some Republican senators gave alarms.

Senator Susan Collins, R-Maine, said she is “very worried” for rates that enter into force due to the proximity of her state to Canada.

“The economy of Maine and Canada are integrated,” said Collins, explaining that a large part of the lobsters and blueberries of the state are processed in Canada and then send back to the United States.

The world economy is now trapped in the fog of what appears to be a commercial war.

Trudeau said that Canada would impose tariffs of 25% to the US goods of Canadian $ 155 billion ($ 107 billion of the United States), starting with tariffs over $ 30 billion in Canadian products ($ 21 billion) in goods immediately and in the remaining amount of US products in three weeks.

“Our tariffs will remain in place until the commercial action of the United States is withdrawn, and if US tariffs do not stop, we are in active and continuous discussions with provinces and territories to follow several non -tariff measures,” Trudeau said.

The White House wishes to see a fall in fentanyl convulsions within the United States, not only on the borders of the north and south. Administration officials say that Fentanyl seizures last month everywhere, from Louisiana to New Jersey, had links with foreign posters.

Damon Pike, Leader of Technical Practice for Customs and Trade Services in the BDO Tax and Consulting Signature, suggested that other countries’ responses could increase commercial tensions and possibly increase economic pressure points.

“Canada has its list list,” said Pike. “The EU has its list list. It will be Tit for Tat. ”

Tim Houston, the leader of the province of the Atlantic Coast of Canada in Nueva Scotia, said he would lead the New Scotland Liquor Corporation that eliminates all the alcohol of the United States from the store shelves. Houston also said that his government will limit access to the provincial acquisition for US companies and double the cost of the United States commercial vehicles on a Peachada road.

The Trump administration has suggested that inflation will not be as bad as economists claim, saying that tariffs can motivate foreign companies to open factories in the United States. On Monday, Trump announced that the Taiwan semiconductor manufacturing company, the computer chips manufacturer, would be Invest $ 100 billion In domestic production.

Even so, you can take time to distributed factories all over the world and train workers.

Greg Ahearn, president and CEO of the toys association, said that 20% tariffs on Chinese products will be “paralyzing” for the toy industry, since almost 80% of toys sold in the United States are made in China.

“There is a sophistication of manufacturing, of the tools,” he said. “There are many crafts that are part of these toys that many people do not understand … facial paint, facial masks, hair tissue, hair braided, cutting and sewing so that they look so that it looks like this.” All that killed work “has gone through generations in the supply chain that exists with China.”

For a president who has promised fast results, Ahearn added a precautionary note about the speed with which the United States factories could match their Chinese rivals.

“That can’t be replicated during the night,” he said.

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Gillies reported from Toronto. The writers of Associated Press Anne d’Onnocenzio in New York, Lisa Mascaro in Washington and Maria Versa in Mexico City contributed to this report.

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