Price increases by Trump's tariffs on Mexico, Canada and China

Price increases by Trump's tariffs on Mexico, Canada and China

On Saturday, President Donald Trump put his - Canada, China and Mexico. He justified this measure with a national emergency that was due to the flow of fentanyl and undocumented immigrants to the United States.

Trump has used and promised to continue using them in the past: to increase the income, to create a balanced trade and to bring rival countries to the negotiating table. Economists, however, warn that these measures could have negative effects on American companies and consumers that still have a strong increase Inflation suffer in recent years.

The US trade chamber warned on Saturday that tariffs will not solve years of problems at the borders and instead threaten to "destabilize supply chains" and increase prices for American families. "Consumers will clearly do worse," said Sung Won Son, Professor of Finance and Economics at the Loyola Marymount University and chief economist at SS Economics, in an interview with CNN.

popular imports from Canada and Mexico

About a third of US imports come from the three countries that Trump targeted on Saturday. Their products are among the everyday and critical goods used by Americans, including fruit and vegetables, meat, petrol, cars, electronics, toys, clothing, wood as well as beer and spirits.

food prices under pressure

Mexico and Canada contribute significantly to several important food categories. Mexico is the largest supplier of fruit and vegetables for the United States, while Canada is the leading of grain, cattle and meat. In particular, agricultural products from Mexico and Canada could become more expensive for consumers, since food dealers have lower profit margins compared to many other industries.

innovations in energy supply

Last year, the United States imported $ 97 billion of oil and gas from Canada, the most important export of this country to the USA. The transfer to Canadian energy products is only 10%, not the 25% announced on other Kanada export goods, which could limit the effects on gasoline prices.

cars and auto parts

steel industry with challenges

Although the United States is no longer the industrial -driven economy that they once were, they still consume tens of millions of tons a year. Canada and Mexico are the largest exporters from Stahl to the USA. Empirical evidence show that the Zölle from 2018 actually increased the prices, which finally increased, Consumer was passed on.

influence on alcohol and beer prices

beer and spirits are also the focus of new customs policy. Customs would result in a drastic increase in costs for some of the most popular drinks in America, including tequila, which can only be produced in Mexico, and the currently leading beer fire.

effects on housing construction

Deforestation of softwood also has an impact on the US construction industry. About 30% of the softwood used annually in the USA come from Canada, and economists warn that collecting tariffs could further tighten the current crisis of living space prices. Other imported raw materials and components could also become more expensive due to the new tariffs.

technology and consumer goods

Consumer electronics is one of the most frequently imported goods from China. Over 99% of the shoes sold in the USA are imported, with more than half of China. China is also an important supplier for toys and sports equipment.

US policy in relation to tariffs could have far-reaching effects on many industries and consumers. In view of the existing challenges in different sectors, careful analysis of the new measures is urgently required.