The announcement sparked widespread reactions internally and externally, amid fears of the impact of these steps on global trade and the American economy.
Here are the highlights from The Hill’s report on this move:
- Linking trade policy to border issues
Trump It aims to use tariffs as a means of pressuring Canada and Mexico to take tough measures on their borders with USespecially with regard to stopping the flow of illegal immigrants and drugs such as fentanyl. In a post on the Truth Social platform, Trump asserted that these tariffs would remain in place “until drugs and immigrants stop invading the country.”
- Angry reactions from allies
The threat has upset Canada and Mexico, with officials in both countries describing the move as a threat to economic stability. Mexican President, Claudia Sheinbaum, warned of imposing retaliatory customs duties if the dialogue fails, noting that this could harm economic relations between the two countries.
- Potential impact on the US economy
These fees may lead to a significant increase in car prices. EnergyAnd housing. According to an economic analysis, the cost of construction tools imported from Canada alone could rise by $41 billion. Tariffs on Chinese goods may also increase by $127 billion.
- Targeting American products in case of retaliation
During his first presidential term, the United States was hit with retaliatory tariffs targeting key exports such as soybeans. The European Union and Canada also targeted popular products such as Harley Davidson motorcycles, costing the American economy billions of dollars.
- Markets are oscillating
Although financial markets were not significantly affected after the announcement, expectations indicate that they may decline when these policies are implemented. Scott Besent, a prominent investor known for his good relations with Wall Street, was chosen as Treasury Secretary to guide this sensitive phase.
Trump’s new threat reflects the continuation of his hostile trade policies, which may ignite a new round of international trade disputes, and raise fears of their impact on the American and global economies.
