Here are six more notes:
- The U.S. will charge a 25% tariff on nearly all imports from Mexico and Canada, a significant increase that could disrupt supply chains and raise prices for consumers. This is a stark contrast from the long-standing zero-tariff trade between the countries, dating back to the 1980s for most trade.
- In addition, President Trump moved forward with imposing a 10% tariff on all Chinese goods. Now, he is planning an additional 10% on all Chinese imports bringing the total to 20%.
- President Trump has repeatedly stated the tariffs are a way to pressure the three countries into taking stronger actions on drug trafficking and illegal immigration. However, at an event March 3 celebrating a U.S. investment by a Taiwanese chip manufacturer, he shifted his focus saying that Mexico and Canada should move their manufacturing, particularly auto factories to the U.S. stating, “What they have to do is build their car plants, and frankly, other things in the U.S., in which case they have no tariffs.”
- Though President Trump originally intended to impose the tariffs Feb. 4, he postponed them for a month after Mexico made a promise to send more troops to the border and Canada promised to appoint a “fentanyl czar.” Despite the efforts, President Trump made it clear March 3 that there was no chance for further delay.
- Experts predict that the tariffs could trigger a recession in Mexico and Canada, both of which rely heavily on U.S. exports. Chad Brown, a senior fellow at the Peterson Institute for International Economics warned that the sudden imposition of tariffs could be highly disrupting, telling the Times, “Increasing tariffs from zero to 25% overnight is likely to be much more disruptive to those now highly integrated North American supply chains than anything President Trump did during his first term.”
- In response to the tariffs, China plans to implement 15% tariffs on U.S. agricultural goods March 10 while Canada has vowed to impose tariffs of up to 25% on U.S. imports. Mexican President Claudia Sheinbaum said her country would enact countermeasures Sunday in response, adding they would include both “tariff and nontariff measures.”
In an email shared with Becker’s, Federation of American Hospitals executive president of public affairs Charlene MacDonald stated, “The fact is Canada and Mexico are critical partners in protecting the healthcare supply chain. Increasing costs on health care imports threatens the immediate availability of essential supplies and increases cosrs on the entire health care system.”
