President Donald Trump is expected to announce new prices on imports from Canada and Mexico, from March 1. However, familiar sources with the question indicate that the price plan will include a process for both countries to search for specific exemptions for certain goods.
Although the deliberations are still fluid before the deadline of Trump Auto-imposed, the rate rate must still be finalized. Trump previously indicated that he intended to impose a 25% rate on imports from the two countries, with certain exemptions likely for specific imports.
According to an administration official, the prices review continues, and although certain exemptions can be taken into account, they will be “rare”. The period of 28 days before the implementation is considered a more cautious approach, giving the time negotiations on measures to resolve questions such as illegal immigration and the flow of fentanyl opioids through the American border.
These prices could considerably disrupt North American trade, worth 1.6 billion of dollars, and potentially put an end to the free trade system which has integrated the three economies in the past 30 years. Prices are considered to be a response to Trump described as the need for Canada and Mexico to take stronger measures on these issues.
Trump also plans a 10% rate on Chinese imports but has not yet made a decision. The sources mentioned that the prices of March 1 would only apply in Canada and Mexico. Trump plans to exempt imports from Canadian and Mexican oil, as crude oil is major importance from the two countries and may have an impact on American gas prices.
The American president is expected to invoke the International Emergency Economic Powers (IEEPA), which would allow him to quickly impose prices in response to the fentanyl crisis and illegal immigration.
Potential economic impact and reprisals
The prices, which could include goods such as aluminum, wood, fruits, vegetables and electronics, should increase prices for us. consumers. Economists have warned that prices will result in higher costs for businesses, which will reduce additional costs to consumers or to absorb the losses themselves.
Canada has already prepared reprisal measures, Prime Minister Justin Trudeau declaring that the country would respond “forcefully” if Trump was going forward with the prices. Canada could target up to 150 billion dollars in American imports, including products such as Florida orange juice, Trump’s original state.
Meanwhile, Mexico President Claudia Sheinbaum said that she would patiently wait until Trump’s decision, but clearly said that Mexico would retaliate if the prices go ahead, warning job losses and prices higher for American consumers.
The current tariff dispute has already caused political tensions and has sparked fears of a broader trade war, potentially disturbing markets and international relations.
