The new 25% tariffs of American President Donald Trump on imports from Mexico and Canada entered into force on Tuesday, as well as a doubling of 20% Chinese products, aroused commercial wars that could cause economic growth and increase the prices of Americans who have always been intelligent after years with strong inflation.
The pricing actions, which seemed to upset almost 2.2 billions of dollars in the American annual trade with its three main trade partners, were put online at 12:01 (0501 GMT). Trump said the three countries had not done enough to stem the flow of mortal fentanyl opioids and its precursor chemicals in the United States.
Trump’s action has sparked a world sale on actions, all the main lower American indices and the NASDAQ falling into a correction territory after European actions recorded their greatest loss of a day in six months. Car manufacturers, house manufacturers, retailers and other stocks sensitive to prices have all taken success.
This has helped push the performance on the US Treasury note at 10 years old at its lowest level since October since October. The dollar has weakened against the Japanese yen and the Swiss franc, but the Mexican peso and the Canadian dollar were both weakened against the greenback.
China responded immediately, announcing additional tariffs of 10% to 15% on certain American imports from March 10 and a series of new export restrictions for designated American entities. Later, he said that he had raised complaints concerning new measures to the World Trade Organization.
Beyond the actions he announced on Tuesday, Trudeau said that Canada would impose prices on another CA 125 billion dollars of American goods if Trump prices were still in place in 21 days, likely to include motor vehicles, steel, aircraft, beef and pork. Canada will also dispute American prices under WTO rules and the American-mexico-Canadian free trade agreement.
“They chose to launch a trade war which, first and foremost, will harm American families,” Trudeau said about the Trump administration. “It’s a very stupid thing to do.”
The prices already caused certain American price increases, against Trump’s electoral wish to reduce subsistence costs for Americans.
Target CEO Brian Cornell told CNBC that the retail giant would increase prices “in the coming days” on certain seasonal grocery products such as Mexico lawyers. “If there is a price of 25%, these prices will increase … Certainly in next week,” said Cornell.
The electronics retailer Best Buy also warned against potential prices up as the prices have entered into force. The CEO of Best Buy, Corie Barry, told analysts on a call according to which China remains the main source of products sold by the company, Mexico in second place.
The 20% tariff on Chinese imports will apply to several categories of Chinese electronics key intact by previous tasks, including smartphones, laptops, video game consoles, watches and smart speakers and Bluetooth devices.
Barry said price increases could take place over a longer period, because Best Buy generally offers about six weeks of inventory.
“We believe that the prices could lead to an increase of almost $ 1,000 per household per year at the cost of goods,” said Kathy Bostjancic, mutual economist. “Strengthening the dollar helps to alleviate part of the impact of inflation, which would be much greater.”
The additional 10% right on Chinese goods adds at a 10% rate imposed by Trump on February 4 to punish Beijing during the American fentanyl overdose crisis and rises at the prices of up to 25% imposed on Chinese imports during Trump’s first mandate.
Some of these products have seen the American prices increase sharply under former president Joe Biden last year, including a doubling of tasks on Chinese semiconductors at 50% and a quadruple in prices on Chinese electric vehicles at more than 100%.
The reprisal prices in China announced on Tuesday targeted a wide range of American agricultural products, including certain meats, cereals, cotton, fruits, vegetables and dairy products.
Beijing has also placed 25 US companies under export and investment restrictions on national security reasons. Ten of these companies were targeted to sell weapons in Taiwan.
American farmers were hardly affected by Trump’s Trump’s trade wars, which cost them about $ 27 billion in exports lost and conceded their share of the Chinese market against Brazil.
