The 25% prices of Donald Trump on Mexico and Canada’s goods have entered into force, as is an additional 10% on Chinese products, which relates to total import tax at 20%.
The American president confirmed the prices in a White House speech – and his announcement has greatly lowered American stocks.
The prices will be strongly felt by American companies that have factories in Canada and Mexico, such as car manufacturers.
Mr. Trump said: “They will have a price. So what they have to do is build their car factories, frankly, and other things in the United States, in which case they have no price.”
There is no longer any “room of space” for an agreement that would see the prices put aside if the fentanyl flowing in the United States is slowed down by its neighbors, he added.
Mexico And Canada Facing 25% prices, with 10% for Canadian energy, confirmed the Trump administration.
And prices on Chinese imports have doubled, from 10% to 20%.
Canada has announced that it would immediately retaliate, imposing 25% prices on American imports worth $ 30 billion C (16.3 billion pounds sterling). He added that prices would be extended in 21 days to cover more American products entering the country if the United States did not raise its sanctions against Canada.
China has also promised to retaliate and reiterate its position that the Trump administration was trying to “change the blame” and
“Bully” Beijing on fentanyl flows.
What is America’s commercial position?
Mr. Trump’s speech attracted the fears of a trade war in North America, causing a financial market sale.
Stock markets The industrial average of Dow Jones and the NASDAQ composite dropped by 1.4% and 1.76% respectively on Monday.
The share price for automotive companies, notably General Motors, which has a significant production of trucks in Mexico, the automaker and Ford has also dropped.
๐ Follow Trump 100 on your podcast application ๐
In the United States, consumers could see price increases in a few days, an expert said.
Gustavo Flores-Macias, professor of public policy at Cornell University, New York, said that “the automotive sector, in particular, is likely to see considerable negative consequences”.
This is due to the supply chains which “crisscross the three countries of the manufacturing process” and “due to the expected increase in the price of vehicles, which can mitigate demand,” he added.
Find out more:
The effects of Trump’s trade rates explained
Trump strikes again in Zelenskyy
The Trump administration is preparing to bring other prices in the coming weeks.
On April 2, reciprocal prices will take effect on all countries that impose tasks on American products.
He also envisages 25% prices on EU goods “very soon” after stating that the block had been created to “screw the United States”.
