Mexico city – Through the tariffs raised by the President Trump on Tuesday, shock waves sent through global supply chains, converted the markets and shaking the basics of the more than three decades of free trade regime to make Mexico, Canada and the USA a uniform commercial colossus.
Starting with the North American free trade agreement in 1994, the three-nation block comprised the principle that the Duty-Free Commerce was a profit strategy and protection against the competition from Asia, Europe and elsewhere, which seems to be very threatened.
With the exception of Canadian oil and gas, which is subject to a tariff of 10%, Washington began a tax of 25% for all products from Canadian oil and gas imported from Mexico and Canada. Trump also imposed a new tax of 10% on imports from China.
Canada and China quickly announced retaliation taxes for US goods, and Mexico said that his own counter-catchers would soon announce.
Today the United States started a trade war against Canada, its closest partner and allied, their closest friend
– Canadian Prime Minister Justin Trudeau
The Canadian Prime Minister Justin Trudeau, who described a plan to tax more than 100 billion US dollars in American goods over the course of three weeks, said Trump's business attack on Canada and Mexico was a disturbing realignment of foreign policy.
“Today the United States started a trade war against Canada, their closest partner and ally, their closest friend,” said Trudeau at a press conference. “At the same time, they speak of working positively with Russia and Vladimir Putin, a liar, murderous dictator. Make that sense. “
Trump, who repeatedly spoke that Canada has become the 51st US state, replied in a social media contribution: “Please explain governor Trudeau from Canada that our mutual tariff, if he rely on a retaliation for the USA, will increase immediately by a similar amount!”
In order to justify his tariffs, Trump quoted fentanyl trade, but he also referred to the illegal immigration and the desire to withdraw the production to the USA
The US shares fell for the fears that the tariffs would trigger a broader trade war, exactly what NAFTA and her successor had signed the agreement between the USA and Mexico Canada on the first Trump management.
“It is the idea of free trade in North America that was thrown out of the window,” said Juan Carlos Moreno-Brid, economist at the National Autonomous University of Mexico. A relationship based on cooperation instead of the competition said “was invalid”.
Supply chains that have been built up for decades – production of a variety of products, including automobiles, computers and television, many produced with components that exceed many times – are thrown in disorder.
“We are going into Buzz with full bore,” said Jerry Pacheco, director of the Border Industrial Assn., A trading group based in Santa Teresa, NM, which was added that the mere threat of tariffs already had a frightening influence on the cross -border business. “I would hate being a supply chain manager now,” he said. “I don't think the Trump administration understands how integrated we are.”
However, others say that Trump-der As a completed deal maker looks like it is probably not exclusively scraping the idea that North America is economically stronger when its nations work together, and that the higher prices for US consumers who are due to a trade war are well aware.
“This is a stumbling block, especially for Mexico,” said Jorge Castañeda, former Foreign Minister of Mexico. “But I think the basic thrust of North American integration continues.”
The ex-diplomat compared the situation with the Mexican President Claudia Sheinbaum with Trump's tariff opposite that of the Ukrainian President Volodymyr Zelensky-the Trump was told last week that he had no “cards” to try to end Russia's war against his country.
“Mexico also has a few chips to play,” said Castañeda.
While Mexico has already tried to soothe Trump, Castañeda will probably ask for more -possibly additional Mexican troops that are permanently stationed along the northern border, and the US inspectors that are stationed in Mexican seaports to prevent retailers from using forer -fitting chemicals that were used in the production of fentanyl Chinese investments in Mexico.
Sheinbaum “has no choice” than to do what Trump demands, said Castañeda.
Three decades ago, Mexico dropped his historically protected policy to use the free trade and become largely export -dependent. The United States today are the goal of more than 80% of Mexican exports, whereby a quarter of their economy depends directly on the trade in the United States.
But there were always skeptics who argued that Mexico shouldn't put too many of his eggs in the US basket and should instead try to expand his trading horizon. Today these warnings look forward.
Analysts said that the tariffs could be extended if they are extended, the already shaky economy to bring Mexico into a recession.
“The tariffs come in the worst time,” said Rodrigo Aguilera, an independent economist that has warned,
Trump's measures threaten to improve the global economy and it was expected to increase the prices for US consumers, with some effects to be felt almost immediately.
Sheinbaum said on Tuesday that Mexico will also retaliate – but her government will determine which products Mexico should address until a public event on Sunday at the Central Plaza in Mexico city. Her answer indicated that Mexico is still trying to avert a full -grown trade war. Sheinbaum said she hope to speak to Trump in the coming days.
“There is no motive, reason or justification that supports this decision that affects our employees and our nations,” she said at her daily press conference.
She also emphasized everything Mexico did for immigration – which contributed to bringing illegal border crossings to the lowest values for years – and drug trafficking. Mexico has increased seizures of fentanyl, the synthetic opioid that has caused tens of thousands of US deaths.
Last week, Mexico handed over 29 suspects of drug trafficking, including Rafael Caro Quintero, the alleged mastermind of the 1985 killing of Enrique Camarena, a hidden agent by the US drug authority in Mexico.
Mexico, Canada and China are the best trading partners in the United States and make up more than 40% of all US imports. They supply the USA with food, medicine, cars, wood and electronics.
Experts say that American consumers could find higher prices for fresh vegetables, fruit and other perishable imports in a few days.
With other products, prices can only increase if the inventory is exhausted. The prices for the cars will rise almost safely. The US car production is deeply intertwined with Mexico and Canada, with parts crossing the border several times. Now these parts are taxed every time they enter the USA 25%
The gas prices are likely to rise, especially in the Great Lakes and Rocky Mountain West, which depend on Canadian oil.
The new 10% tariffs in China contribute to duties that Trump imposed on Chinese imports last month and during his first term. It is expected to meet American households because China is a large supplier of a wide range of consumer items.
Trump has recognized that the new tariffs could cause pain to consumers, but he argued that they are worth withdrawing to the United States and paying out the trade with the affected countries, each of which sells more goods to the USA.
“Make your product in America,” he said in a speech in a speech about video at the World Economic Forum this year. If not, he said, “Then you just have to pay a tariff.”
The tariffs increase the agreement between the USA and Mexico Canada, which Trump negotiated and the 2020, He praised as “the most beautiful, most balanced and advantageous trade agreement that we have ever signed in the law”.