Donald Trump looked at a counter -reaction of corporate groups and some in his own Republican party after launching a trade war by imposing strong tariffs to the three largest trading partners in the USA.
Trade associations that represent consumer goods, oil, food and car manufacturers warn that Trump’s new tariffs – including 10 percent tariffs for imports from China, 25 percent for all imports from Mexico and Canada, with a delivery of less than 10 percent for Canadian energy – Would increase the prices for ordinary Americans and cause chaos in supply chains.
“The president has the right to concentrate on important problems such as our broken border and the scourge of fentanyl, but the imposition of tariffs. . . I will not solve these problems and only increase the prices for American families, ”said John Murphy, Senior Vice President of the US Chamber of Commerce, the largest group in the United States.
Consumer product groups warned that the Americans would see more expensive foods, while car manufacturers warned the tariffs to increase the costs of building vehicles in the USA.
“Customs of all imports from Mexico and Canada, especially on ingredients and inputs that are not available in the USA-were able to lead to higher consumer prices and retaliation against US exporters” of the consumer Brands Association.
Kim Clausing, Senior Fellow at the Peterson Institute, said the tariffs “the greatest tax increase since the 1990s”.
“We are used to having a smooth trade in North America. And that took some people’s life, ”said Clausing.
“So it is very dramatic to go from free trade to 25 percent, and I think it will lead to a big shock for the US economy.”
On Saturday Trump imposed a steep tariffS over Canada, Mexico and China, catapulting business nationalism to the top of his agenda while giving the US trade deficit with his trading partners.
In response to this, the Canadian Prime Minister Justin Trudeau announced 25 percent tariffs for goods worth $ 155 billion (USD 107 billion), including US alcohol, clothing, household appliances and wood.
The Mexican President Claudia Sheinbaum is expected to soon also became known to tariffs even after the warning of retaliation.
Trump drove his attacks on US trading partners on Sunday and used the US trade deficit on social media and repeated his demand that Canada for a “51. State ”.
“We pay hundreds of billions to subsidize Canada. Why? “He posted social times about truth.
“There is no reason. We don’t need anything you have. We have unlimited energy, should make our own cars and have more wood than we can ever use. Without this massive subsidy, Canada exists as a viable country. Hard but true! Therefore, Canada should become our estimated 51st state. “
The aggressive new trade measures were criticized by legislators such as Tim Scott, the Republican Senator of South Carolina, who described them as “nothing more than a tax on South Caroliners”.
“I understand and appreciate the willingness to take over the dubious actions of countries like China that constantly break and ignore the rules, but at best it is unproductive to treat our narrow, long -term allies in the same way,” wrote Scott on X.
The Democrats of Congress pushed Trump.
“These ruthless tariffs take a slanter in which a scalpel is necessary, and the American people will pay the price,” said Richard Neal, the top democrat in the House of Representatives, which monitors trading policy.
“Goals, thoughtful measures for certain industries can protect American interests and employees and have a thorough political design,” added Neal. “The president doesn’t.”
The Peterson Institute estimated last month that Trump’s endangered sanctions would cause economic damage for all countries involved, including the United States.
The 25 percent tax on imports from Canada and Mexico would lead to a hit of around $ 200 billion for the US economy for the duration of Trump’s duration. The USA of higher tariffs in Chinese imports would be $ 55 billion. The US inflation would also increase.
Ed al-Hussainy, senior interest and currency analyst at Columbia Threadneedle, said the United States “committed the most risky tariff strategy with a high probability of retribution”.
“I assume that the financial conditions will be tightened from this week-think about a suit of the shares, broader credit distribution-since the risk markets are now the” tariffs are a negotiating tactics “scenario and a higher down risk,” said he.
Goldman Sachs Research analysts wrote on Sunday that “it is more likely that the tariffs will be temporary”, since they determine potential economic effects and the general conditions for their distance.
The investment bank had previously estimated that a long -term tariff of 25 percent on imports from Canada and Mexico would increase core prices for personal consumption by 0.7 percent.
Additional reporting by Claire Jones in Washington and Harriet Clarfelt in New York
