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President Donald Trump announced plans to impose a 25% tariff on all imports from Canada and Mexico. Effective from his first day in office. But the move was largely “diplomatic,” drawing on Trump’s “war chest” to leverage U.S. interests. According to one expert
Customs duties are taxes that are imposed by the government on imported or exported goods. It can increase the cost of imported goods, making local products more attractive to purchase.
“President Trump has used taxes effectively before. And I think we can expect him to continue to use those kinds of taxes in a targeted way. even in areas not directly related to trade,” Andrew Hale, senior policy analyst at the Heritage Foundation, told Fox News Digital.
Trump’s proposed tariffs on Mexico, Canada and China will increase inflation, GOLDMAN SACHS warns.
The scene of the southern border and President Trump (Getty Images)
Hale noted that Trump’s previous use of tariffs was not only aimed at trade imbalances. but also issues such as border security. and drug trafficking as well According to Hale Trump has continued to use these tariffs in areas that go beyond trade imbalances. They use these taxes as a diplomatic tool to promote their policies. “America comes first”
“Trump continues to assert America’s strength on the world stage. This is something the Biden administration is unwilling to do. And both allies and opponents have noticed this. What I would call the resurgence of U.S. leadership. With the return of Trump,” he said.
Hale suggests that if Trump’s tax proposals are implemented Mexico and Canada may challenge them under USMCA, but he doubts it will go that far. As the measure has previously proven effective in achieving U.S. goals, Hale also speculates that Trump may use the tariffs to his advantage in other contexts, such as targeting countries that oppose U.S. allies, for example. Israel
“I don’t see it going that far. Because it works,” he said.
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Immigrants climb a wall to request asylum in the United States from Tijuana, Mexico, on June 7, 2024. (Carlos Moreno/Anadolu via Getty Images)
During the first period Trump has renegotiated the North American Free Trade Agreement (NAFTA), replacing it with the United States-Mexico-Canada Agreement (USMCA), which took effect in July 2020. The USMCA aims to modernize. and resolve problems in the original NAFTA, especially those related to labor rights. environmental standards and digital trade
“I will inform her. (President of Mexico Claudia Sheinbaum) knew on the first day or even sooner that if they didn’t stop the onslaught of criminals and drugs coming into our country. I will immediately impose a 25% tariff on everything they send to the United States,” Trump said during his final campaign stop in North Carolina before the election.
Hale added that Trump’s success in using tariffs during USMCA negotiations with Canada and New Mexico demonstrates their power as a diplomatic tool. While Trump criticizes various countries on trade imbalances and issues such as drug trafficking That is the reason for collecting taxes.
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Chinese President Xi Jinping attends a meeting with Brazilian President Luiz Inácio Lula da Silva in Brasilia on Nov. 2, 20 Nov. 2024. (Reuters/Adriano Machado)
“The Biden administration has not implemented USMCA as well as it should. Because Mexico is violating it,” Hale said.
Although the tariffs are aimed at stimulating U.S. production, Some experts and politicians warn it could disrupt supply chains. Increased costs for businesses that rely on foreign products and may lead to retaliatory tariffs from trading partners. which affects exporters in America
last Thursday Liberal Gov. Gavin Newsom of California took aim at Trump’s proposal. By calling this proposal a “One of the largest tax increases in U.S. history.”
“You are being betrayed by these policies,” Newsom said.
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According to the Tax Foundation The Trump administration has determined He called for “$80 billion in new taxes on Americans” in 2018 and 2019, when he imposed tariffs on $380 billion worth of goods.
The Biden administration has largely kept these tariffs in place. It then enacted additional tariffs on $18 billion worth of Chinese goods.
Former Vice President Mike Pence came out in support of Trump’s tariffs. But it called for a sensitive approach to balancing the country’s relationship with Beijing.
“I sincerely hope that his proposed tariffs will bring China back to the negotiating table as they did during our administration. I know this will be difficult and create challenges in the short term. But it will be worth it in the long run. Pence said this week. “We want better for America and China – and I believe that as a company. But a fair approach is the best way to get there.”
Trump also recently suggested to Canadian Prime Minister Justin Trudeau that tariffs for not addressing trade and immigration could kill our northern neighbor’s economic life. Maybe that state will become the 51st, sources told Fox News.
Sources said Trump has become more enthusiastic when talking about the U.S. trade deficit with Canada, which he estimates is worth more than $100 billion.
Fox News Digital’s Caitlin McFall, Greg Wehner and Bret Baier contributed to this report.
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