Trump Trade Tariffs: All Know star-news.press/wp

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President Donald Trump is officially ejected the first trading war His other administrations with new import taxes from Canada, China and Mexico.

Here’s what you need to know.

What did Trump announce?

The US president on Saturday announced a sprinkling tariffs on imported goods from the highest trading partners of the nation.

This includes a 25% tariff on all Mexican imports, 25% on most Canadian imports, and 10% in all Chinese imports. Exports of energy from Canada is taxed at a rate of 10%, because the United States is very dependent on Canadian raw oil.

All tariffs are expected to enter into force on the goods that goes into the USA or withdraw from a warehouse on or after 12:01 ET on Tuesday, according to the words White house. If the goods are repeated on a ship that leaves a foreign port or in transit before that time, it will not be subject to new duties.

The exemption of de minimis, a key hole used by e-merchants like themes and Šeana to keep the prices down, also frozen. The law allows the packages to be valued on less than $ 800 to enter American customs duties as long as they are packaged and addressed to individual customers.

“We are a country now run with common sense – and the results will be spectacular !!!” Trump wrote on his truth social on Sunday.

Between January and November 2424. year, a shop with Mexico was $ 776 billion, which makes it a top trading partner. Trade between the US and Canada has exited 699 billion dollars in that period, while trade with China was 532 billion dollars, according to the words American Bureau for Census.

What are the tariffs, anyway?

Tariffs are simply the duties found in foreign goods imported into the United States and pay for import jobs.

The most common tariffs are what is called “ad valoreum”, which represent a fixed percentage of import value. The Trump 25% of the tariffs on Canadian and Mexican goods would be considered ad valoreum.

Other types of tariffs may include “certain tariffs”, which are charged as a fixed amount in each imported good and “tariff rate quote”, which is initiated after a certain import threshold. Trump slap Washing machines with tariff quota in 2018. years; The first 1.2 million imported washing machines were affected with 20% tariffs, while importers paid 50% to additional units.

Tariffs are paid by the Federal Government by the companies responsible for importing products. These benefits usually collect American customs and border protection, although Trump wants to create a new agency to specifically collect that money.

Consumers, in the end, usually finish higher prices for the same goods after the tariffs are entered. Many companies simply cannot afford to absorb additional costs of compensation, so they push the price with their customers.

Best shoppingAutozone (Available+ 0.57%), Stanley Black & Decker (SWK-4.54%), A Columbia Sportswear (Colm-3.68%) are only a a handful of major companies It said that they would probably have to increase prices.

“If you have 10% of the profit margin, then 25% of the tariffs completely wipes the profit completely”, Jack Rossbach, assistant professor at Georgetown University in Qatar, said quartz previously.

How did Canada, China and Mexico answered?

Canada has already announced its retrian tariffs on American goods, starting with a 25% tariff worth $ 20.4 billion worth the goods that will take effect on Tuesday. Additional tariffs worth $ 107 billion will be active for 21 days.

“This is a choice that, to harm Canadians. But beyond that will have realistic consequences for you, the American people,” Canadian Prime Minister Justin Trudeau said for American tariffs During the press conference Saturday.

“Yes, we had differences in the past, but we always found a way to cross them past them,” Trudeau said. “As I said, if Trump President wants to serve in the new golden age for the United States, it is a better way to partner with Canada, not to punish us.”

Mexico said he would announce Retaliacar tariffs, but did not release additional details. President Claudia Sheinbaum said in Spanish at X to Mexico “categorically” rejects “Blander” and Charges for White Houses, has connections with cartels, noting progress in which Mexico has done since it took office in October.

“Mexico does not want a conflict,” she said, calling us in the United States and Mexico to work together to fight crime and drug trafficking. “Problems do not relate to imposing tariffs, but by talking and dialogue.”

The Chinese Ministry of Trade said that it will submit a lawsuit with the World Trade Organization and take “appropriate countermeasures”, according to Translated statement. Part of the role of the WTO is to help resolve trade disturbances, which have issued More than 350 judgments about such issues.

“The unilateral tariff increase in the United States seriously violates the Rules of the WTO,” the ministry is stated. “It is not only ungodly in solving their own problems, but also violates normal economic and trade cooperation between China and the United States.”

Which goods could be most affected?

In spite of the higher times speak On the campaign track that the tariffs would not raise costs for consumers, Trump has now admitted that they can hurt US citizens.

“This will be the golden age of America! Will there be some pain? Yes, maybe (and maybe not!). But we will do America great again, and everything will be worth paying”, written by Trump about the truth .

Although Mexico’s special retaleling tariffs are not appointed, their influence is expected to be far-sighted. Likely to target food products, such as cheese, pork and whiskey, with produced steel and aluminum, Reuters reported last week.

Now in 2003. imported $ 38.5 billion in agricultural goods from Mexico, including 90% of all avocados, together with $ 40,5 Billion valuable agricultural imports from Canada. Other main imports From Canada, Mexico and China include aluminum, wood, plastic, electronics, semiconductors and more.

Canada The list of affected goods is widely ranged and meant to hurt the regional industry.

“Like American tariffs, our response will be far and involved and everyday items such as American beer, wine and bourbon, fruit and fruit juices, including orange juice,” Trudeau said on Saturday. “There will include large consumer products such as household appliances, furniture and sports equipment and materials such as wood and plastic, along with many, much more.”

Canadian leaders are also considering several non-tariff measures, including some of the energy and critical minerals, told Trudea. David Eby, Prime Minister of British Columbia, has directed Government agencies exclude us supplies from new purchase agreements. Ontario’s Premier, Doug Ford, told The province would forbade American companies from the provincial contracts.

“Let’s go one step further. We’re telling the contract of Starlink. Ontario will don’t do business with people of Hellbent about the destruction of our economy,” Ford wrote on X. Starlink is a subsidiary of the Spacex, a higher counselor Trump.

According to S & P global mobility (SPGI-1,34%), Almost all original equipment manufacturers will affect the tariffs on Canada and Mexico. Wolfe Research has estimated 25% of the tariff would add about $ 3,000 to the average cost of sold vehicles in the USA even Tesla (Tsla-5.44%), what’s up most “Americans” cars are likely to be influenced, according to CFO VAIBHAV Taneji.

Canada is also the source of more than half American imports of crude oil, ship four million barrels on average between January and November 2024. years. Mexico delivered 465,000 barrels a day. Oil prices are expected Although the lower tariff in Canadian energy will reduce some pain in the pump.

How do they react in markets?

Shortly after the market opened on Monday, Dow fell for 558 points or 1.25%. S & P 500 lost 1.6%, while Tech-Heavy Nasdaq spilled 2%. CBOE volatility index, a Popular metric In order to judge the expectations of the volatility market in the next 30 days, 21% increased.

Krptoturrences are affected andAs the global capitalization of Kryptoturrency markets fell 7% in the last 24 hours, according to Co Ringecko. Bitcoin traded on Monday morning from $ 98.12 after falling 2.67% to just over $ 95,000 earlier in the day.

“These announcements came as a shock for many investors who were expected tariffs will only be imposed if trade negotiations failed”, Goldman Sachs (GS-1.41%) Analysts said on Sunday.

Goldman estimates that Trump tariffs will reduce their S & P 500 earnings per share by approximately 1% to 2% for each price rate of 5 percent. Without taking into account any additional influences, the Investment Bank estimates that 2% up to 3% hit in earnings S & P 500 per share.