Earlier this year, President, elect, Donald Trump threatened to put a high tariff on products originating from Mexico, Canada, and China once he comes into power. The measures that Obama intends to adopt are on some of the existing matters such as; The problems ranging from the European countries’ immigration management where immigrants from Latin America have been deemed as illegal, illicit drug traffic information, and what he refers to as unfair trade practices.
only be abolished once the problem of unlawful migration and drug trafficking – or fentanyl in particular – is solved. So, same as before the planned increase in existing tariffs by 10%, Trump claims China has been doing nothing to stop the ‘influx’ of the narcotics into the United States.
These tariffs if instituted could severely affect various industries in the USA, and consumers by increasing price of products on the market. Specialists believe that the new taxes may lead to more than $2,600 a year being paid by the average American family and affect supply chains, which will slow down economic growth and intensify inflation.
There are cases in which existing market reactions have already been negative resulting from such an announcement. Canadian dollar fell in value as did the Mexican peso; U.S. stock futures and Treasury bond prices also fell. Applied in the course of the presidency of Donald Trump, tariffs were followed by trade wars and countermeasures, and relatively low positive effects on local manufacture.
Trump’s proposed tariffs will hit the basics such as oil from Canada, cars and machinery from Mexico, electronics and furniture from China, among others. Opponents say these measures, which are conceived to support the domestic industries, could lead to more economic turbulence and can violate the USMCA.
Nevertheless, Trump has continued to intensify on the approach, arguing it will force other countries to change on courtesy of issues such as drug trafficking and unfair business practices as well as improve America’s economy. Still, economists and trade specialists are not convinced and state that similar actions would only harm both American companies and people.
