President Trump impose prices of 25% on most imports from Mexico and Canada, as well as 10% prices on imports from China. Mexico provides more than a quarter of fresh fruits and vegetables in the United States, including popular lawyers in the Guacamole of the Super Bowl.
Alfredo Estrella / AFP
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Alfredo Estrella / AFP
A new world trade war has started.
President Trump signed decrees on Saturday, imposing 25% tax on most imports of two of the country’s largest business partners: Canada and Mexico. Chinese goods will be billed a 10%tax.
The prices come into force on Tuesday.
Trump said that in an article on social networks that he took action in order to fight against the illegal flow of drugs and immigrants through the borders of the United States north and southern.
Canadian crude oil will be subject to a 10%less price, which could reduce the effect on American petrol prices. Midwest oil refineries strongly depend on the Canadian crude.
Import taxes could lead to higher prices for a wide range of products, including fruits and vegetables, flat -screen TVs and car parts. Targeted countries are expected to respond with prices for reprisal of its own American exports.
Business groups began to react immediately after the announcement. A commercial group representing the alcohol industry said the prices would affect jobs.
“Since the 1990s, the trade in spirits in North America has been largely without a price, resulting in significant growth. Trade in spirits in American Canade increased by 147%, while the American-mexic trade jumped 4 080%”, according to a joint statement by the distilled council of spirits of the United States, the Tequila industry chamber and the Canada spirits.
The group said that products are distinguished for each country and that prices would affect national industries. Bourbon and Tennessee whiskey can only be manufactured in the United States, tequila in Mexico and Canadian whiskey in Canada.
On Sunday, in coordinated declarations of the Chinese Foreign Ministry and the Ministry of Commerce, Beijing denounced the prices and declared that China would take “unpertified corresponding countermeasures”. The Ministry of Commerce declared that the prices were a serious violation of the rules of the World Trade Organization and declared that it would launch a legal dispute at the WTO. Fentanyl, which, he said, was ultimately an American problem, and said that the taxation of prices “will inevitably affect and undermine future cooperation between the two parties on anti-drug issues”.
In the United States, companies and buyers had already started to make emergency plans. Commercial data published earlier this week showed a sharp increase in imports in December, suggesting that certain companies have tried to store goods before prices take effect.
Some individual buyers have also tried to beat the prices. Personal expenses on sustainable products such as cars and televisions jumped in December, according to figures published Friday by the Commerce Department. Mexico is one of the main producers of flat -screen TV.
Prices have occurred more than 200 times on corporate profit calls this month.
The automotive industry should be particularly affected because it is highly integrated, based on manufacturing in the three countries.
General Motors told financial analysts on Tuesday that he could move a production of vans from Mexico and Canada if prices are imposed. But the automaker is reluctant to act while the commercial landscape is still uncertain.
“We are ready to mitigate the short -term impacts,” said CEO Mary Barra. “What we will not do is spending (a) a large amount of capital without clarity.”
John Ruwitch contributed to this Beijing report.
