Trump increases tariffs on Mexico, Canada and China on the first day

Trump increases tariffs on Mexico, Canada and China on the first day

The designated president Donald Trump announced on Monday massive tariff increases for goods from Mexico, Canada and China, which should come into force from the first day of his office. This policy could significantly increase the costs for American companies and consumers.

tariff policy in response to illegal immigration

Trump said that the increase in tariffs was a reaction to illegal immigration as well as crime and drugs that reach across the border. "On January 20, I will be one of my first decrees to sign all the necessary documents to mexico and Canada a tariff of 25 % on all products that come to the United States," Trump wrote on his Truth Social platform. “This tariff remains in force until the drugs, especially fentanyl, and all illegal immigrants stop this invasion of our country!”

reactions to the announced tariffs

Trump emphasized that the neighboring countries of the United States could “easily solve” this long -lasting problem. In addition, the goods from China are to become 10 % more expensive beyond the existing tariffs until the country stops the illegal drug flow into the USA. "I have a lot of conversations with China about the huge amounts of drugs, especially fentanyl, which are sent to the United States - but without success," Trump also said about Truth.

A spokesman for the Chinese message, Liu Pengyu, replied that China was in contact with the USA via drug fighting and that the idea that China Lasse deliberately flow from Fentanyl into the USA is “completely in contradiction to the facts”

consequences for the US economy

The desired new tariffs could significantly burden the American supply chains and industries that rely on goods from the closest trading partners. Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions, explained that the proposed measures “hit a number of strategic US industry branches hard, add about $ 272 billion to tax burdens annually, increase the prices for goods, cause interest and burden the already weakened budget.”

After the announcement, the Canadian dollar fell by $ 1.2 % compared to the US dollar and the Mexican peso by 2 %. Although the Yuan, which is controlled by the government, was traded over 7.6 % higher on the offshore market, the US financial markets also suffered a setback. The extraordinary tariffs would increase the cost of everyday goods that were previously over the border without import taxes.

goods imports of the USA

The most important import of the United States from Canada is oil that is a record of US-ENERGIE INFORATION . In addition, America imports cars, machines as well as various raw materials, plastics and wood from Canada. Conversely, the US industry receives the majority of its cars and auto parts from Mexico, which China overhauled the USA in 2023.

Trump's Taled strategy

Trump pursued an aggressive tariff policy to strengthen domestic production and generate additional tax revenue. These tariffs effectively act as tax on imported goods. Although he claims that the affected foreign countries pay the tariffs, they are ultimately taken over by the companies that the imported goods buy, and the costs are usually transferred to American consumers. According to the Peterson Institute for International Economics, the tariffs of a typical US budget proposed by Trump could be via 2.600 Dollar costs.

Trump demands significantly higher tariffs during his second term. He speaks of a tariff of over 60 % to all Chinese goods and a general tariff of 10 % to 20 % to all other imports to the USA. These developments could have a significant impact on international trade and the economic stability of the United States.