Palm Beach, Florida (AP) – New commercial penalties Against Canada, Mexico and China President Donald Trump Plans to impose on Saturday represent an aggressive early move against America Three larger business partnersBut at the risk of higher inflation and possible disturbances for the global economy.
In the opinion of Trump, the 25% price Against the two North American allies and a 10% tax on imports from the main economic rival of Washington are a way for the United States to launch its financial weight to reshape the world.
“You see the power of the price,” Trump told journalists on Friday. “No one can compete with us because we have the greatest piggy bank by far.”
The Republican President makes a major political bet that his actions will not act inflation, cause financial replicas that could destabilize the global economy or cause a reaction from voters. Voting, an in-depth study of the electorate in last year’s elections, revealed that the United States was divided on prices.
The prices may be short -lived if Canada and Mexico can conclude an agreement with Trump to approach illegal immigration and fentanyl smuggling more aggressively. Trump’s decision against China is also linked to fentanyl and is also presented with existing import taxes.
Trump honors the promises he made during the White House campaign 2024 which are at the heart of his philosophy of economic and national security, although the allies of Trump expressed the threat of higher import taxes as that simple negotiation tactics.
The president is preparing more import taxes in a sign that the prices will be part of his second term. Friday, he mentioned imported computer flea, steel, oil and natural gas, as well as against copper, pharmaceutical drugs and imports of the European Union – of movements which could mainly oppose the United States against a large part of the world economy.
Trump’s intentions sparked a rapid response from the financial markets, the S&P 500 stock market index after its announcement on Friday.
We do not know how prices could affect commercial investments which, according to Trump, would occur due to his plans to reduce the tax rates of companies and remove regulations. Prices tend to increase prices for consumers and businesses by making foreign products more expensive.
Many voters turned to Trump during the November elections on the conviction that he could better manage inflation that increased by Democratic President Joe Biden. But the expectations of inflation slip upwards in the feeling of consumers of the University of Michigan, because the respondents expect prices to increase by 3.3%. It would be higher than the real annual inflation rate of 2.9% in the consumer price index of December.
Trump declared that the government should increase more of its income from prices, as it did before income tax is part of the Constitution in 1913. He claims, despite the economic evidence of the contrary, that the United States was at its richest in the 1890s under President William McKinley.
“We were the richest country in the world,” Trump said on Friday. “We were a pricing country.”
Trump, who sucked to redo America using the McKinley model, conducts an experience in real time that economists who warn prices lead to higher prices are wrong. Although the prices of his first mandate do not increase global inflation significantly, he now examines the prices on a much greater scale that could increase prices if they lasted politicians.
Trump affectionately called McKinley, an elected president of Ohioan in 1896 and 1900, the “tariff sheriff”.
Brad Setser, a principal researcher in the foreign relations council, noted on the social media site X that the prices “if they were supported, it would be a massive shock – a much more important decision in a weekend than all Trade measures that Trump has taken in his first term. “”
Setser noted that prices on China without exemptions could increase the price of iPhones, which would test the amount of power of American companies with Trump. Apple CEO Tim Cook attended the inauguration of Trump last month.
Recent research on Trump’s various pricing options by a team of economists has suggested that commercial sanctions are based on growth in Canada, Mexico, China and the United States, but Wencing Zhang, an economist Cornell University that has worked on research, said the benefits would be felt more in Canada and Mexico because of their dependence on the American market.
Canadian Prime Minister Justin Trudeau told Canadians that they could face difficult times to come, but that Ottawa was ready to respond with reprisals if necessary and the American sanctions would be self-sabashing.
Trudeau said Canada is aimed at Trump’s calls on border security by implementing a border plan of $ 1.3 billion CDN (90 million US dollars) which includes helicopters, new canine teams and Imaging tools.
Mexico president Claudia Sheinbaum said her country had acted to reduce illegal border crossings and illicit trade in fentanyl. Although she underlined the current dialogue since Trump launched the prices for the first time in November, she said that Mexico was also ready to respond.
Mexico has a “plan A, plan B, plan C for what the American government decides,” she said.
Trump has yet to obtain a budget, tax reductions and an increase in the government’s legal loan authority through the congress. The result of his pricing plans could strengthen his hand or weaken it.
Democrats are sponsoring legislation that removes the president from his ability to impose prices without approval from the congress. But it is unlikely that it makes progress in a house and a Senate controlled by the Republicans.
“If the prices for this weekend come into force, they will make catastrophic damage to our relations with our allies and will increase costs for the families of workers per hundreds of dollars per year,” said Senator Chris Coons, D- Del. “Congress must prevent this from reproducing.”
