Donald Trump Tariff War Former america of america Donald Trump Has once again created a earthquake in global trade. Due to their aggressive policies Canada and Mexico Is facing 25% tariff. However, this fee on Canada’s energy resources Limited to 10% Will remain, but its effect Economy and politics But you can be seen clearly.
Prime Minister Justin Trudeau Challenging this decision of Trump and said in two words,
“We did not want this, but if America moves forward, we will also give a strong answer.”
This trade war will not only affect the relations of these countries, but also American consumers will have to pay a heavy price.
American tariff crisis on Canada and Mexico economy
According to economists, this Trade war the effect of Terrifying It is possible
Canada Crisis on industries: Demand for Canada’s export in the US market may decrease, which will affect industries.
Burden on American consumers: The products will be expensive due to tariffs, which will have to pay a higher price for American customers.
Political instability: Trudeau’s popularity may be affected as their government will face economic problems.
BBC According to the report of Canada to avoid this trade war 690 million dollars Can spend more than your industries to be saved. But the question arises –Will it be enough?
What options do Canada have?
The Trudeau government has several avenues, each of which has its own advantages and disadvantages. Let’s see how Canada can respond to America:
1. To tariff on American goods
Trump in 2018 10% on Canada’s aluminum and 25% on steel The tariff was imposed. Then Canada retaliated American orange juice, whiskey and other products But the tariff was put. This can also be done this time.
👉 This can lead to trade deficit to America.
👉 But it can increase inflation for the people of Canada.
2. Dollar-for-Dal Tariff Strategy
The Trudeau government has adopted this strategy before. The more tariff America is put in it, the more Canada also applies on American products.
But, Scott Mo leader of Suskechewan province Has opposed this decision. They believe that this will harm Canada’s economy.
3. Ban on energy supply
Can Canada stop energy supply to America?
Vermont, New York and Main For example, American states depend on the electricity purchased from Canada.
👉 in America 60% crude oil Comes from Canada.
If Canada stopped oil and power supply, American markets can cause earthquakeBut Alberta province The government is against this step, because it Canadian oil industry may also suffer damage,
4. Boycott of US products
Chief Minister of Ontario Daug Ford Suggested that from Canada shops American wine To be removed. This can affect many US businesses.
5. No response
👉 Another option is that Canada remains silent at the moment and dubbed a diplomatic solution.
👉 Canadian Foreign Minister Malani Jolie Constantly talking to American counterparts.
👉 Many experts believe that Canada should focus on diversifying its trade relations and increasing domestic production.
Mexico status and potential response
With this decision of Trump, not only Canada, Mexico will also be badly affected,
Direct effect on automobile industry – Mexico exports a large amount of auto parts to the US.
Working class crisis – Many factories of Mexico depend on the US market, which threatens thousands of jobs.
Impact on agricultural industry – Mexican avocado, tomato and other agricultural products may have a huge impact.
Experts believe that Mexico can plan to impose counter -tariffs on American companies,
Will America also suffer a loss?
The Trump administration may be presenting it as a strong step, but it can also cause huge losses to the US.
High consumer prices – American citizens will have to buy expensive goods.
Pressure on American companies – The supply chain of many companies can be interrupted.
Political instability – This policy of Trump can also cause problems to the Biden administration.
What will happen in the coming days?
Now the big question is that Will this tariff war progress, or will both countries reach an agreement?
👉 Between Canada and America Political tension may increase further,
👉 In the US market Canadian companies may get a huge shock,
👉 If there is no talks, then this trade war And can be dangerous,
Canadian citizens are concerned about this situation, but the Trudeau government does not have much options. Will he give a befitting reply to this challenge of Trump, or will he find a solution from diplomacy? This will be cleaned in the coming weeks.
Scorching relationship in the heat of tariff war!
Trade war between America, Canada and Mexico Getting deeperCanada and Mexico from Trump’s tariff Economy shock It is installed, while American consumers may also have to pay expensive prices.
Will this dispute resolve soon, or will it cause a new global economic problem? The answer will be found with time, but one thing is certain-This business war is not in anyone’s side!