After midnight on Tuesday, the announced tariffs of 25% on imports of Mexican and Canadian products into the United States went into effect, in a gamble by Trump that no one knows how it will end. The US president says the measure is aimed at pressuring his North American partners to more forcefully prevent the trafficking of drugs, particularly fentanyl, to the United States. Still, it also builds over the “trade deficit” narrative that Trump insists on so strongly. The immigration “invasion” argument was initially included here as well, but Trump himself very recently terminated it in a truth. Mexico made a good effort to make points with the head of the White House, tightening control over migration and criminal activity at the border, extraditing high-profile criminals wanted by U.S. justice, and turning away from China on trade. But the 47th president bypassed any possibility of a second moratorium, and the promise came true. Chinese goods now have a 20% tariff associated upon arrival on U.S. soil, a 100% increase over the introductory hike that went into effect in February.
Experts and businesses argue that the effect of the Republican leader's policy will be negative in the short and long term. The West Wing rejects that its tariff move will be reflected in consumers' bills. Instead, what the current U.S. administration is aiming for is the empowerment of the domestic industry and the relocation of strong productive poles abroad permeated by Chinese financial and commercial interests. AP gathered some criteria that discuss the possibility of relocating to the United States certain production stages of the supply chain in items such as toys, based on the (in)capacity of American human capital compared to that accumulated precisely by producers of the Asian giant or supported by its powerful wallet in the world. Inflation is expected in critical products such as cars, electronics, and gasoline, but, again, it is necessary to see in the short and long distance where this so-called trade war is headed. President Claudia Sheinbaum has been very cautious in responding to Trump's decisions and hopes that a conversation scheduled for Thursday will allow for a moratorium or settle “debts” with Trump.
“All of the economies involved in the tariffs will see a loss in their real GDP (gross domestic product) and increasing consumer prices in general,” said an academic from the prestigious Cornell University, who added that the main problem will be on the side of the Canadian and Mexican economies. This approach of applying or threatening to apply tariffs as a pressure measure, which Trump loves, could be extrapolated later to the trade relationship with India and European countries or to specific products such as computer chips. In any case, it is also projected that the Oval Office could backtrack on its strategy if the health of the U.S. economy worsens because of it. “The consumer electronics supply chain is highly global, technical and complex. China and Mexico remain the No. 1 and No. 2 sources for products we sell, respectively,” said a CEO of a Richfield-based company. “We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely,” he added. The CEO of another Minnesota-based company notes that he expects to see a rise in products such as Mexican avocados soon.
Source"We're economically strong and self-sufficient. Unlike them, we're not looking for the car of the year or the best cut of meat. We're happy with a plate of beans and an egg," a 31-year-old Mexican truck driver told AFP about Trump´s tariffs.
WITH TRUMP'S TARIFFS, ILLINOIS FARMERS WORRY ABOUT LOSING CORN SALES TO MEXICO (From Reuters)
Nasdaq nears correction territory dragged down by trade tensionshttps://t.co/xfreQYO7gz
March 4, 2025— Breaking News (@jooilong)
On immigration
TRUMP'S EARLY IMMIGRATION ENFORCEMENT RECORD, BY THE NUMBERS (From Reuters)
The White House talks tough on illegal immigration but ignores a key tool that could reduce ithttps://t.co/065xAQvseM pic.twitter.com/9t39xByncr
March 4, 2025— The Washington Times (@WashTimes)
Being tough brings results and known beneficiaries
BlackRock strikes deal to bring ports on both sides of Panama Canal under American control https://t.co/SOchFqSPkH
March 4, 2025— News 6 WKMG (@news6wkmg)
Venezuela
The only thing allowed now is to wind down. Yet before the end 👇
Venezuela's oil exports rose in Feb ahead of Chevron's license termination https://t.co/u3HFwb8Jx2 via @Reuters
March 4, 2025— Nino Brodin (@Orgetorix)
