Trump slaps 25% tariffs on Canada and Mexico - starting tomorrow, 4 March 2025
From here:
Trump: 25% tariffs on Canadian and Mexican imports will take effect | Just The News
“Following the announcement of another $100 billion investment from Taiwanese chipmaker TSMC, Trump took questions from the media and confirmed that the tariffs announced last month will go into effect Tuesday. “
From Brave AI:
“In addition to the $100 billion investment, TSMC had already announced plans to invest more than $65 billion in the U.S., including three plants in Arizona”.
“… a $500 billion partnership to invest in infrastructure tied to artificial intelligence, a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI …”.
Trump’s trade policies are yielding fruit! The TSMC announcement follows those from Apple ($500 billion) and Softbank ($100 billion).
As for trade, these numbers are likely to fall dramatically, but here are th numbers from 2024, from Brave AI:
“The value of Mexican imports to the United States in 2024 was $505.9 billion, up 6.4 percent from 2023.24 Additionally, the United Nations COMTRADE database on international trade reported that United States Imports from Mexico was US$509.96 Billion during 2024.”
“In 2024, the United States imported goods worth US$421.21 billion from Canada according to the United Nations COMTRADE database on international trade.
The total value of U.S. imports from both Canada and Mexico was approximately $844 billion, as data from the U.S. Census Bureau shows.”
It’s a two-way street, of course. US exports to Canada and Mexico will be subject to reciprocal tariffs.
“The total value of U.S. exports to Mexico for the year 2024 was reported to be $334.04 billion according to the United Nations COMTRADE database on international trade.”
“The value of U.S. goods exports to Canada in 2024 was $349.4 billion, which is a decrease of 1.4 percent from 2023.”
So, a deficit of around US$150 billion with each of Mexico and Vanada.
“Canada has imposed retaliatory tariffs on a variety of U.S. imports in response to President Donald Trump's new tariffs on Canadian goods. These tariffs include 25% levies on American beer, wine, and bourbon, as well as fruits and fruit juices, including orange juice from Florida. Canada also targeted goods such as clothing, sports equipment, and household appliances.”
No mention of oil or gas!
“President Donald Trump has confirmed that 25% tariffs on Mexican imports will go into effect on Tuesday, March 4, 2025, as part of his efforts to address the flow of illegal drugs and undocumented migrants into the United States.
Mexico's President Claudia Sheinbaum has stated that her administration is prepared to respond to the tariffs and has emphasized the importance of cooperation while maintaining the country's sovereignty.”
Can the US “survive” without Mexican and Canadian goods by making the gods in the US or paying up for them or doing without?
What will be the impact on inflation (price increases on imports plus exports)? Well, given that the US economy is producing around $30 trillion a year, and the value of trade from Canada and Mexico is around 1,6 trillion - assuming no change in the level of trade and a 25% tariff all round - makes for an extra 400 billion pf inflationary impact - 25% of 1.6 trillion - adding a little over 1% to US inflation -assuming that there is an even application of the 25% tariff on all goods and services.
Of course, US products are likely to step in - under the umbrella provided by the tariffs - every marginally = previously - uncompetitive producer is now far more competitive!
It is quite likely that national fervour - anti-Americanism - will break out in Canada and Mexico.
Trump is surrounded by the very socialists that are anti his MAGA agenda with their “WEF” globalist agenda. Mexico has a socialist President - Trudeau is a socialist and let’s not forget the Union of European Socialist Republics - the UESR and its Politburo - the Commission!
The UK - which jus hosted a bunch of failing socialist EU leaders - is also radically left wing socialist - with just 20% of the electorate voting!
Fuel for US growth? We shall see - the Golde Age beckons!
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Onwards!!!