President Donald Trump threatened to impose tariffs on Canada, China and Mexico, the largest trade partner in the United States. U.S. importers will pay 25 % of the products from Canada and Mexico to force Trump to try to force them. A country that suppresses immigration to the United States and drug trafficking. Imports from China, on the other hand, face 10 % of tariffs, unless Beijing in the smuggling of Fentanil Prostrian Chemicals to Canada and Mexico is not wrapped in the reins, where the United States will be a Fentanill in the United States.
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There are nine graphics that show such potential economic impacts in all four countries.
What can tariffs affect the United States?
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Almost half of the US imports (over $ 1.3 trillion) are the results from Canada, China, and Mexico. However, the Bloomberg economics analysis indicates that new tariffs can reduce imports throughout the United States by 15 %. Washington -based Tax Foundation estimates that customs duties will produce about $ 100 billion per year with additional federal tax revenues, but also imposes more expensive economy. We will eventually raise the consumer price of work and in the end.
A specific Sector of the US economy is particularly fierce, such as automobiles, energy, and food sector. Since Canada and Mexico have imported more than 70 % (PDF) to the US refinery, the gas prices can rapidly increase by 50 cents per gallon in the midwest. In addition, cars and other vehicles are also at risk for the United States to import nearly half of automotive parts from neighbors in the northern and southern parts.
The 25 % tariffs between Canada and Mexico will increase the production costs of US automakers and add up to $ 3,000 to the price of about 16 million cars sold every year in the United States. Mexico is the largest source of freshan agricultural products in the United States, which supplies more than 60 % of US imports in the United States and almost half of all fruits and nuts imports, increasing the cost of food. 。
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Nevertheless, the United States does not depend on many other developed countries, including Germany, Japan, and the UK. Imports and exports account for just one -quarter of the US total production (GDP), and the United States has been imported from quite a wide range of countries.
How can tariffs affect Canada and Mexico?
Trade accounts for about 70 % of the GDP of both economics, so tariffs will be much more intense to Canada and Mexico.
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The two countries are particularly dependent on trade with the United States. More than 80 % of Mexico exports (automobiles, machinery, fruits, vegetables, medical equipment, etc.) are heading north, accounting for 15 % of the US imports. This dependence is particularly noticeable on the northern border of Mexico. There, industrial countries, chihuahuas, core viras, Nueboleon, and Bahakarifornia account for almost half of the exports of Mexico to the United States, and send computers, electronic devices, transport equipment, and other products of more than $ 200 billion each year. I am.
According to the Bloomberg economy, one -sided 25 % tariffs on these products can reduce Mexico’s GDP by about 16 %, and the Mexican car industry can stand on the arrow. Mexico sends nearly 80 % of the production cars to the United States and has won about 2.5 million vehicles each year. The duties will also threaten the energy department of Mexico. The United States is a recipient of about 60 % of Mexican oil exports, mostly tied to the US refineries. At the same time, Mexico is the largest destination for sophisticated petroleum exports in the United States, and is more than 70 % of domestic demand. US tariffs make fuel more expensive, raise prices with pumps, and burden Mexico’s broader economy.
Canada faces similar issues. The United States has purchased more than 70 % of Canadian exports (PDF; Spanish), accounting for 14 % of the US imports. Under a new tariff, the Canadian energy sector is the biggest blow, as exporters send 80 % of oil to the south.
These asymmetry, the cost of tariffs at home, have greatly used North American partners in negotiations with the United States.
How can tariffs affect China?
China depends on relatively few United States and does not depend on overall trade. For the past 20 years, the government has steadily reduced the importance of trade in the economy, as Beijing has increased domestic production. Today, imports and exports account for about 37 % of China’s GDP compared to more than 60 % in the early 2000s.
In recent years, trade in previous tariffs and export management, such as automotive parts, data servers, furniture, and semiconductors, has decreased. Instead, China has strengthened trade with other partners, including the European Union, Mexico and Vietnam. Even if the US share has fallen, the national world trade share has risen by about 4 % since 2016, when President Trump first took office. At the same time, these factors reduce the impact of 10 % tariffs to China to exports to the United States.
What happens the next day?
Currency in each country will be weakened, reducing tariffs on imports, and raising the effective price of US exports to other countries. The weakened source has already relieved the hitting of Chinese producers and supports exports around the world. Approximately 30 % depreciation of Mexico pesos since April also reduces potential effects by 8 % decrease in Canadian dollars since September. The market may driven Pesos and Canada dollars when tariffs are introduced.
In addition, Canada, China, or Mexico have been able to respond to the United States’ unmatched tariffs. Mexico’s President Claudia Symbaum has already suggested that Mexico can be retaliated on its own tariffs, and the United States and the Mexican Canada Agreement (USMCA), which supports North American free trade, will probably allow it.
This is not the first time the country has made a round trip. In 2018, Mexico and Canada imposed tariffs on steel and aluminum, and then installed a total retaliation fee of more than $ 15 billion, including steel, pork, yogurt, and tablecloth. Similarly, the United States lost $ 20 billion in the annual farm export when China from 2018 to 2019 opposed many US tariffs.
If any of Canada or Mexico retaliation, US fuel exporters may be the largest hit alongside car manufacturers, including pharmaceutical producers and other advanced manufacturers.
Retaliatric tariffs on the United States will mainly affect the state of the manufacturing industry. Mexico includes 70 % (PDF), including New Mexico exports, including hundreds of dollars in US semiconductor chips, and will later return to the United States with Mexico cars and electric appliances. Texas sends more than $ 2 billion chips, automotive parts and electric equipment to Mexico. Overall, exports of the state south of the state account for 5 % of GDP. Customs duties also exports exports of $ 5 billion in Ohio to Canada, and stops exports of $ 32 billion in the main state.
Will Merrow has created a graphic for this article.
