Mexico and Canada strike back on the tariff war that was first kicked off by President Trump. Trump first imposed steep tariffs on steel and aluminum from Canada, Mexico and the European Union. As the trade penalties, 25% on imported steel and 10% on imported aluminum went into effect, the countries immediately responded with their own tariffs against American products.
The three counties are America’s biggest trading partners, and Trump’s decision could result in raised prices for Americans on everyday products. In addition, the U.S. will also move ahead with tariffs on Chinese goods. Trump previously said he was not concerned with a tariff war and that our country can financially handle one.
Mexico has retaliated and will impose tariffs on American bourbon, American lamps, pork, flat steel, and several other agricultural products, including apples, potatoes and cheese. The tariffs will ultimately amount to between 15 percent to 25 percent, according to CNBC.
Mexico’s tariffs come after China imposed tariffs on U.S. pork. The effect will hurt producers, because the U.S. pork industry is a “low-cost producer of a high-quality product that’s heavily dependent on trade, “according to Ken Maschhoff, chairman of Maschhoff Family Foods. You can expect to see temporary dropped prices on bacon at the supermarket, but if downsizing occurs, it will lead to higher prices for American consumers.
Canada has also proposed to hit the U.S. with steel tariffs and American exports of prepared ready-to-eat beef products. The largest U.S. nail producer has already cut 60 jobs because of the tariffs, and may soon be going out of business.
The president’s new trade stems from the “America First” trade policy he has been promoting since his presidential campaign. Over 1,000 leading economists have urged him to reverse his course on the tariffs put in place. We all know history repeats itself, and if we recall, the Smoot-Hawling Act, was designed to protect U.S. industries, but many studies cite it as a major reason for the depth of the Great Depression. Congress at the time, ignored economist who warned them on passing the act. The act led other countries to retaliate with high tariffs.
As other goods including vehicles may increase in price for consumers, Trump defends his tariffs and says Canada and Mexico “take advantage of us economically.” Trump’s tariffs have prompted anger from U.S. allies, but he says he is putting America first. Given the history and where we are now, are you at all worried about the tariff war? 8% of people seem to be worried, while 92% of people aren’t worried at all, and think Trump knows what he is doing. Read the full story on CNBC here.
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Mexico and Canada strike back on the tariff war. They are now imposing their own tariffs on US goods. Are you worried?
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