Why Did Trump Impose Tariffs On Canada: Huge impact on the economy after the 25% tariff on Canada and Mexico Goods, it is unclear how the cost will added up for the consumers but most economists says this will lead to higher prices. Including Groceries, Alcohol, Gas and Cars.
This will rise the tension of Global Trade War as both short-term and long-term trade tensions rises in the trade market such as increasing the cost of imports, Market Uncertainty, Supply Chain Disruptions, Retaliatory Tariffs, Shifting Manufacturing, Trade Agreement Challenges, Potential Trade Wars.
Why Did Trump Impose Tariffs On Canada and Mexico?
His motive to restrain illegal immigration for stopping fentanyl, a small dose of it can kill. Trump said “Huge amount of fentanyl are receiving in the country from Mexico, also from China from where it goes to both Mexico and Canada”. In the last four years America has suffer from major death of people because of this drug nearly killed 0.1% population of the America. He also imposed 10% tariff on China goods, also mentioning that in other way it is benefactor for the American businesses.
New Strategies for Businesses
After the imports goods going high range chance for new businesses may increase they have less competitors and higher volume for selling goods to the consumers in both retail and wholesale. The trade stocks affect after the bump hit on the business can led to lose the interest of the investors for gearing up in the stocks anymore.
Short-Term Impact
Increased Costs for Imports: The Goods of Canada and Mexico buy from the consumers they will not think about because of the high cost added after the increment of the tariff their businesses goes bankrupt for sure.
Market Uncertainty: Investors can lose their interest after disruption in the trade that will affect the stock market.
Supply chain disruption: cross-Border trade depending companies including sectors like manufacturing, agriculture and automobiles may face delays and increase potential cost.
Retaliatory Tariffs – Canada and Mexico expresses reciprocal and may impose their own tariffs on U.S. goods in the future, potentially hurting American exporters.
Long-Term Impact
Shifting Manufacturing : It is a long way process to shift the companies in the U.S. but they could do that to reduce the tariff on goods and this disrupts the jobs of the peoples.
Inflationary Pressure – Higher costs of imported goods may contribute to inflation, impacting overall economic stability and deep strengthen of the country.
Trade Agreement Challenges – The tariffs may strain relationships within USMCA (United States-Mexico-Canada Agreement), leading to reduced trade cooperation. If there is no Trade cooperation in fetishism of being Independent country in the manufacturing can lead to starve and weakens the stability.
Read also: Who Is Winning The War In Ukraine?
Potential Trade Wars – If trade tensions escalate among the countries, it could lead to broader conflicts with trading partners, affecting global supply chains. We can see global trade pandaemic we can say that it will not help in growth the economic stability.
Conclusion
While the administration believes these tariffs will benefit American businesses in the long run, there is a catch the immediate effects could be economic uncertainty, higher costs, and potential retaliation from Canada and Mexico. It will cause the potential growth rate going down and higher cost can cause real damage to the household.
