WASHINGTON (AP) – Columbia was already forced to accept exiles by threatening 25 % tariffs, President Donald Trump The same step is being read against Canada and Mexico as Saturday.
But this time, the at stake is high and many economists who survey the potential loss will relieve that they will suffer the wounds of themselves.
“The possibility of such economic implications should be quite obstacle to that Trump will not implement these high taxes,” said Matthew Martin, senior US economist at the Consultancy Oxford Economics.
Trump has repeatedly insisted that revenues are coming Canada and MexicoDespite the two countries, they are trying to address their stated concerns about illegal border crossing and fantasy trafficking. But the Republican president also encourages the idea that revenue will force other countries to “respect” the United States.
“We are going to instantly install mass prices,” Trump said in a speech on Monday, adding, “Colombia is traditionally a very strong country.” But it Backup instead of facing import taxes.
Revenues are a threat, but Trump White House says it is seeing a big picture
Numerous economic analysis suggests that universal prices against Canada and Mexico are at risk of inflation and economic slowdown. This is a larger game against Trump’s actions against Colombia, which is about 0.5 % of US imports. On the contrary, about 30 % of all US imports belong to Canada and Mexico, increasing the risk that revenue can boost inflation and damage Trump’s campaign promises so that prices Can be controlled.
Kevin Hast, director of Trump’s White House National Economic Council, dismissed the concerns. He said that suspected analysis of revenue does not see the full status of Trump’s promises.
“When President Trump’s trade policy is trying to spread panic on President Trump’s trade policy, Hasset said in an interview on the Fox Business Network, he does not calculate all other policies.” “So President Trump reduces drills, babies, drills, and deductions and tax deductions and costs.”
Mexico and Canada are ready to respond
Following a preliminary threat to Trump’s 25 percent of Trump’s revenue in November, Mexico’s President Claudia Shanbam suggested that Mexico could retaliate with its own taxes. Since then, it has been more measured, which has been chosen to emphasize strong bilateral relationships and willingness to engage in dialogue, as the number of detention on it. US Mexico Border Sinking.
Shenbam pointed out in November that the drug was an American issue, but in December, the Mexican army seized more than one tonne of phenotheel pills in two raids, and declared it the largest catch of artificial opioids in Mexico’s history. Give
On Monday, Shenbam praised the Trump administration and Colombia’s deal.
He said, “I believe that the important thing, as I said on the first day, is always working with a cold head, and defending the sovereignty of every country and the respect between nations and people.”
The Canadian Chief Minister said Last week that Canada was ready to retaliate if Trump imposed an import tax, even Canadian Foreign Minister Melanie Julie said he would “continue to work on preventing taxes.” It seems that working theory in Canada involves being prepared for anything that the US president can do.
Revenues can slow the economy and can hurt oil and auto sectors
On Monday, the Economics Division of the Insurance Company has estimated nationwide that inflation on Trump’s Canada and Mexico will increase by 0.5 percent points and growth will increase by 0.7 percent.
The analysis states that it has not “calculated a possible retaliation rate from Canada or Mexico, which can increase the harmful effects on inflation and GDP growth.”
Trump has reduced one of his major strategies to tackle inflation in low gasoline prices, but revenue on Canada can raise prices on pumps unless Trump has made his plan.
“For example, 60 percent of oil and gas imports come from Canada,” said Martin of Oxford Economics. “25 % for tariffs and firms, especially in Midwest and Rocky mountainous areas, where refineries are connected through a pipeline from Canada, 25 % for high petrol, diesel and petroleum products prices “”
Tax services firm PWC considered the potential impact of 25 % of revenue and found that Canada -imported companies could pay $ 106 billion annually to import taxes, and $ 131 billion in importers from Mexico more Can be obligatory.
“When we think of the most affected industries, we think about transportation and automotive,” said Chris Desmond, Principal of PWC’s International Trade Practice. “The quantity of companies in Mexico and Canada in this industry, along with components and parts, will also be a huge hit, including aircraft.”
Desmond estimates that all Trump’s tariff projects pay taxes on imports in the transport sector, including new taxes on China and other countries, up from $ 4 billion a year to $ 68 billion a year. Can grow. It is unclear how companies absorb these costs or possibly bring them to consumers.
None of these analysis is at the forefront of Trump’s public views. The reason for this is that prices will be made rich by sheltering competitively, and they can be tools to force other countries to reduce illegal immigration.
Trump said on Monday, “Prices, I told you the most beautiful word in the dictionary,” Trump said on Monday when he praised the import tax and remembered his campaign speeches. He reminded how he was criticized for praising the term, and indicated to conclude that tariffs are, in fact, the fourth beautiful word after “God, love, religion”.
