A blow to supply chains
The analysis of Joshua P. Meltzer, principal researcher of Global Economics and Development of the Brookings Institute, emphasizes that these tariffs would have a particularly strong impact on North America trade. This is due to the high volume of exchange and the importance of regional supply chains, which represent about 50% of intra -regional trade.
In addition, it warns that these contradict the target of the Trump administration to strengthen supply chains in the region and reduce China’s dependence. Instead of promoting greater economic integration in North America, tariffs will encourage companies to diversify their commercial options and increase their cooperation with China.
Low credibility to US
Beyond the immediate economic impact, tariffs also call into question the credibility of the United States as a commercial partner. Being potentially incompatible with the T-MEC, they send a worrying message to the world: international agreements with the United States may not be so reliable.
As a result, other countries could start looking for alternatives to mitigate their dependence on the United States, strengthening commercial and investment ties with China and other economies.
Shared economic damage
The Trump Tariff of 25% to imports from Canada and Mexico will reduce the economic growth of the United States, there will be fewer jobs, it will cause a salary drop and an increase in prices, and the reprisals of Canada and Mexico will multiply economic damage In the three countries.
“President Trump has said that these tariffs are a response to the illegal fentanyl and immigrant flows of Mexico and Canada. The problem with these tariffs is that they impose immediate costs to US consumers, workers and companies without a clear link between these tariffs and how they will reduce immigrants or fentanyl flows, ”concludes Meltzer.
