In addition, Trump said he will impose 10% of tariffs to China as he had previously said and within his proof of these impositions is an “extraordinary threat of migration,” said the White House spokesman.
White House officials said there would be no exclusions from tariffs. In addition, in the specific case of Canada, they said that the US tariff exemption “minimis” for shipments of less than $ 800.
The measures respond to a threat that Trump has reiterated since he won last year’s presidential elections, and it is likely that they will trigger reprisals and the risk of a commercial war that could cause great economic disorders to all the countries involved.
After the announcement, the Republican said that this imposition is made after a crisis of migration and drug addiction that EU is experiencing.
What can this measure imply?
The impact of this decision, according to analysts, would be reflected at multiple levels, affecting from the economies of the three countries to the stability of global supply chains.
In the first place, such a measure would put the viability of the treaty between Mexico, the United States and Canada (T-MEC) at risk, whose purpose is precisely to facilitate trade and investment between these nations. By increasing import costs, US companies that depend on inputs and products manufactured in their commercial partners could face greater production costs, which in turn would affect the prices of the final consumer.
For Mexico and Canada, tariffs would mean a reduction in their competitiveness in the US market. Mexico, for example, is the main business partner of the US and a key center for automotive, electronic and agricultural manufacturing. An increase in exports could translate into an economic slowdown and the possible relocation of investments to other countries with lower commercial barriers.
In addition, these types of measures could cause commercial reprisals, with the imposition of tariffs on American products, affecting sectors such as agriculture and manufacturing in the US that depend largely on their exports to Mexico and Canada.
Finally, the uncertainty generated by these types of decisions could have effects on financial markets, impacting the exchange rate, investment flow and the confidence of companies in the region. The imposition of tariffs would not only increase goods and services, but would also put economic growth and employment in the three countries at risk.
In a global context where the resilience of supply chains is key, any attempt to impose commercial barriers among these strategic partners could have significant consequences in the economic stability of North America.
With Reuters information.
