The US import duties of 25 percent on imports from Mexico and Canada came into force on Tuesday. Previously, President Donald Trump had announced that there would be no postponement this time. He also doubled the additional import duties to deliveries from China from ten percent to 20 percent. A month ago, he had postponed tariffs shortly before the entry into force after the governments had promised Mexico and Canada to better protect the borders from drug smugglers and illegal immigrants. Kanada’s head of government Justin Trudeau announced immediate countermeasures in response to the US tariffs. Canada will introduce tariffs of 25 percent to US goods, Trudeau said. This initially only applies to goods with a total value of $ 30 billion, the statement said. After 21 days, this number will be increased to a total of $ 155 billion. China also reacted: the government in Beijing imposed punitive tariffs on several agricultural products from the United States in height between ten and 15 percent. This is done because the US government undermines the “multilateral system of world trade” with its “unilateral approach” and “the foundations of the economic and trade policy cooperation between China and the USA”, the Ministry of Commerce said. Trump speaks of “punishment” for trading partners’ trump to justify the new tariff: ” Our companies take over and expect them not to be punished. They are punished by tariffs. ” The President thus delivers a new reason for the tariffs after justifying the customs surcharges a month ago with defective efforts by neighboring countries in border security. At the same time, this reduces the hope of other trading partners such as the European Union, to be able to appease Trump by accommodation in individual questions. The tariffs meet the three largest trading partners in the United States, both in terms of imports and what is concerned. Canada and Mexico are also associated with the USA via a free trade agreement. On March 12, the United States also put import duties of 25 percent on steel and aluminum imports in force. Economic economic consequences expect tariffs, according to model calculations of different economists, will have serious effects on the United States itself and disastrous consequences for the American neighbors, whose exports have so far become more than 75 percent into the United States. The Budget Lab at Yale University calculates that prices in the United States could increase between 1 and 1.2 percent as a result of the customs increases. This is not only because imports become more expensive. Domestic companies can also increase their prices due to the reduced competition from abroad. According to the model calculation, cars and auto parts are more expensive for Americans by 6.1 percent, which corresponds to $ 2900 for an average car. Falling purchasing power and growth losses are the consequences for the United States, while Both Canada and Mexico are at risk of recession. The Oxford Economics analysis house estimates that flat-rate US tariffs in the amount of 25 percent together with proportional retaliatory tariffs (GDP) in Canada by 2.5 percent to shrink, inflation Inspelling and the unemployment rate would increase to almost eight percent. Canada’s energy, automotive and other heavy industry branches would be most affected by the flat-rate US tariffs due to the high level of cross-border trade in these industries. The consequences for Mexico are also brutal. The country not only depends on goods exports to the United States, which correspond to around 40 percent of economic output, but also on US tourists and transfers of Mexican employees in the United States. Almost 90 percent of exports consist of parts and components for cars and machines that cross North America six to seven times. A difficult blow are the tariffs for the car and supply industry, including numerous German producers. Volkswagen, Audi, BMW and Mercedes are represented with large production sites in Mexico-as well as the large suppliers Bosch, ZF and Conti, which are mainly geared towards the US market. Representatives of the American auto industry had tried in two rounds of discussion to avert the tariffs or at least enforce exceptions for their industry. “An inch of 25 percent on the border between Mexico and Canada will tear a hole in the US industry that we have never seen before,” Jim Farley, CEO of the Ford Motor Company, warned last month. Canada announced comprehensive retaliation tariffs last month, which at the same time come into force with Trump’s tariffs. Prime Minister Justin Trudeau said the retaliation was politically necessary. The Canadians would understand that. In fact, the approval values of the Liberal Party of Trudeau have clearly recovered since Trump’s attacks. Canadians are boosing at sporting events for the national anthem “Star-Spangled Banner”. They boycott US products in supermarkets. Many have downloaded apps that show suitable substitutes for US products. The airline West Jet stated that Trump’s statements about tariffs and exchange rates led to the Canadian demand for travel to the USA declined by 25 percent in early February.
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