Experts and economists warn that this could also generate inflation and increase the cost of basic goods in the United States.
The government of the United States confirmed the application of new tariffs with a 25 to products from Mexico and Canada and a 10 to Chinese importsThe measure seeks to pressure these countries on issues such as trade, immigration, and drug trafficking.
Impact on products and prices
The new taxes will affect key sectors of the economy. Automobiles, steel, electronics, pharmaceuticals, and imported food products they will see increases in their costs, which will affect consumers. It is estimated that the price of automobiles assembled in Mexico and Canada will increase by several thousand dollars.
Footwear and electronic devices, mostly manufactured in China, will also increase in price. 99 percent of the shoes sold in the U.S. are imported, which could make brands like Nike and Steve Madden more expensive.
A possible impact on inflation
Although the tariffs from Trump’s first term did not cause a notable increase in inflation, the current situation is different. According to the Peterson Institute for International Economics, the measure could add 2,600 dollars annually to the expenses of an average family.
Additionally, countries affected by the tariffs could respond with trade retaliations. In the past, China, Canada, and Europe imposed levies on American products in response to similar measures.
Mexico and Canada seek to avoid tariffs
Faced with the imminent implementation of the taxes, Canada announced the formation of a special force against fentanyl trafficking with helicopters, drones, and trained dogs. The Mexican government has also initiated talks to prevent the implementation of these tariffs.
Meanwhile, some experts, such as JPMorgan CEO Jamie Dimon, say the measure is necessary for national security, even if it entails additional costs for consumers.
The final impact will depend on whether the negotiations prevent the full implementation of the tariffs or if they end up intensifying in the coming months.
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This guy playing with sanctions doesn't change.