Why It Matters:
The 25-percent tariffs which is implemented from Sunday, potentially risk substantial price increases for American consumers across an array of common goods including cars. If not left out of the tariffs, oil price will soar and consequently would lead to gas price hike.
State of Play:
The new policy marks a significant shift away from the nearly duty-free trade (USMCA) that has characterized relations among the three North American partners for years.
What They Are Saying:
Mexican President Claudia Sheinbaum says that problems are being solved not through the introduction of tariffs but by dialogue. She emphasized that Mexico does not want confrontation.
Canadian PM Justin Trudeau says Ottawa will impose immediate tariffs on $30 billion worth of goods, followed by additional tariffs on $125 billion worth of American products within 21 days.
Go Deeper:
Some analysts fear it could escalate into a tit-for-tat trade war as countries whose exporters are subject to tariffs put their own on US imports in retaliation. The tariffs could lead to potentially much higher costs, disrupted supply chains and the loss of jobs.
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