How could Donald Trump prices have an impact on consumers | US News Aitrend

Donald Trump has long threatened growing prices on the goods of Mexico, Canada and China.

The second president maintains that higher levies will help reduce illegal and smuggling fentanyl migration in the United States.

Saturday, the president confirmed that he would submit Mexican and Canadian goods At the full rate of 25% – and Chinese imports at 10%.

However, Canadian energy, including oil, natural gas and electricity, will be taxed at a rate of 10%. The samples will take effect on Tuesday.

Although the Trump administration indicates that changes will strengthen interior production, there will probably be large negative consequences for the American consumer.

Economists argue that supply chains will be disrupted and that companies will undergo an increase in costs – which will result in a global price increase.

Find out more:
Why did Trump target Mexico and Canada?
Canada and Mexico have retaliated with reprisals

Mexico and Canada are counting strongly on their imports and exports, which represent around 70% of their raw interior products (GDP), which exercises them even more at risk of new prices.

China is based on trade only 37% of its economy, having made a concerted effort to accelerate domestic production, which makes it relatively less vulnerable.

Here we examine where we consumers will feel the greatest impact.

Avocats – and other fruits and vegetables

The United States imports between half and 60% of its fresh Mexico products – and 80% of its lawyers, according to figures from the US Department of Agriculture.

Canada also provides a large part of the United States and vegetables, which are mainly grown in greenhouses on the other side of the American border.

This means that an increase in prices will quickly be transmitted to consumers in the form of higher price.

The United States still becomes a considerable amount of its own products, so changes could stimulate domestic production.

But economists warn that overcoming national products will also see these suppliers increase their prices.

Petroleum price

Prices for oil and gas are likely to be affected – as Canada provides around 60% of American imported oil imports and Mexico about 10%.

According to the US Energy Information Administration, the United States received around 4.6 million barrels of oil by day of Canada last year – and 563,000 in Mexico.

Most American oil refineries are specifically designed to treat Canadian products, making sources of supply and costly changing supply.

There has been speculation according to which Mr. Trump could exempt oil from new changes – but if he does not do, the United States could see an increase in fuel prices up to 50 cents (40p) one Gallon predicted economists.

Cars and vehicle parts

The American automotive industry is a delicate mixture of foreign and national manufacturers.

The supply chain is so complex, automotive parts and half-finished vehicles can sometimes cross the American-mexic border several times before being ready for the exhibition hall.

If this continues, the parts would be taxed whenever they move the countries, which would lead to an even greater increase in prices.

To alleviate this, General Motors said that he would try to rush through Mexican and Canadian exports – while thinking about how to move manufacturing in the United States.

Electronic goods

When Donald Trump imposed a 50% rate on washing machines imported during his first mandate in 2018, prices suffered years later.

China produces a large part of the consumer electronics – and smartphones and computers in particular – the price of 10% could therefore have a similar effect on these devices.

Biden administration has attempted to legislate to promote national production of semiconductors (microchips necessary for all smart devices)-but for the moment, the United States still depends on China for its personal electronics.

This will mean an increase in prices for consumers, unless technological companies can move their operations far from Beijing.

Boost for the steel industry

The sector that could feel the most Trump prices is the steel and aluminum industry.

He has long put pressure on the government to put prices on foreign suppliers – saying that they dominate the market and leave the American factories without enough business and at risk of closing.

Steel imports increased the price of domestic production – and economy saving some of the factories.

But when Mr. Trump increased steel prices during his first mandate, prices also increased – which said that business leaders have forced them to pass on costs and left them with Budget construction projects.

Global inflation

An increase in prices of all these goods would inevitably lead to generalized overall inflation.

According to Economics Capital Analysis, Canadian and Mexican prices would put inflation greater than 3% – which is much higher than the lens of the federal reserve by 2% – and Chinese direct debits would see it even more.