- President Donald Trump plans to impose new prices in Canada and Mexico on Tuesday.
- Many states had one of these countries as their largest trading partner in 2024.
- The expected prices can increase prices and lead to commercial reprisal movements.
President Donald Trump plans to take new prices from Canada and Mexico from Tuesday. These countries are large international business partners for many American states.
Canada was the largest commercial partner in imports of goods for almost half of the 50 states in 2024, according to data from the census office. You can fly over the card below to find out more about the best business partners for each state.
Trump said on Monday that 25% prices on Mexico and Canada, which were previously to come into force in February, would start on Tuesday. He said that there was “no more room” so that the countries will conclude an agreement with the United States on the prices proposed.
Trump previously said that the “massive subsidies we give to Canada and Mexico in the form of deficits” were one of the reasons for the prices. Trying to mitigate the level of drugs that enter the United States is another.
If Trump implements his price plans, this could lead to prices for reprisal from targeted countries, which could affect American exports. China had imposed prices following the 10% rate which was applied on February 4.
Canada was the largest trade partner for exports for 32 states in 2024, while Mexico was the main trade partner for exports for several other states.
“We will continue to work to make sure to do our best to ensure that there is no tariff on Tuesday,” Prime Minister of Canada said Justin Trudeau on Sunday.
Trudeau added that if the prices come into force, “we will have a strong unequivocal and proportional response as the Canadians await.”
The new prices would probably affect us consumers.
“We will see companies deciding if they will absorb these additional costs or if they will transmit them to consumers,” said Mary Lovely, a main woman at the Peterson Institute, previously told Business Insider. “Since consumer spending has been fairly floating and the economy is doing well, we would expect them to transmit a lot to consumers.”
Tiff Macklem, the Governor of the Bank of Canada, previously spoke of the economic effects of a trade conflict between the United States and Canada.
“A long -term and wide trade conflict seriously harmed economic activity in Canada,” said Macklem. “At the same time, the higher cost of imported goods will exert a direct increase in inflation.”
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