US President Donald Trump had announced to impose a 25 per cent heavy tariff of 25 per cent to punish her two big neighbors Canada and Mexico. This ban was also implemented from 1 February. But barely 24 hours of this ban had passed that Trump, who had big boast, had to retreat.
Trump put tariffs on Canada, Mexico and even China as per his election promises. A statement issued from the White House said, “President Trump Mexico, Canada and China are taking adventure steps to prevent illegal migration and to stop poisonous Fentasal and other drugs from their promises to stop coming into our country. . “
China has 10 percent tariffs on China, but after some normal diplomatic talks with Canada and Mexico, Trump stopped the decision.
On Tuesday, the US government announced that the plan to impose a 25 % tariff on Canada and Mexico has been banned and this ban will be applicable for 30 days. Along with this, the world, due to the possibility of tariff war, breathed a sigh of relief. Trump also got an idea that it is a different matter to make electoral promises outside power and implementing it is a different thing.
So the question arises that why did Trump become soft?
Actually both Mexico and Canada are the major trade partners of America. The mutual nature of these three economies means that any action from Trump could have been harmful for America as well.
If we talk about the top trading partner of America in 2024, then the top is Mexico, then the number comes after Canada is the number of China. Along with these three countries, the US trade more than 40 percent of its total business. According to the amount, this figure is $ 2 trillion.
Let us now understand what is the business of America with Mexico and Canada.
According to a report by Al Jazeera, America’s total trade with Mexico from January 2024 to November 2024 is $ 776 billion. US exports to Mexico are $ 309 billion, while US imports from this country are $ 476 billion.
Main import-export between Mexico-America
The US asks for vehicles and automotive parts, electronics and electrical machinery, fuel, vegetables, electrical appliances, machinery, agricultural products (such as avocado and tomato), metal, plastic, chemical, clothes and furniture from Mexico. These things would have become very expensive in America by the US applying 25 percent tariff on these things. This would affect American consumers.
The main exports from the US to Mexico include machinery, electrical equipment, vehicles and their parts, mineral fuels, and agricultural products (such as maize and soybeans). After the announcement of 25 percent tariff from Trump, Mexico also announced to impose 25 percent tariff.
At the same time, President Claudia Shinbom of Mexico had said that the problems do not solve the problems, but things solve things.
If Mexico also taxed the exports from the US, it would have affected the American economy. Because after the tariff is imposed, imports from America would have become expensive for Mexican traders and reduce imports.
Currently, Trump has avoided this problem for 30 days by postponing the character.
Main import-export between Canada-America
The total trade between Canada and the US from January 2024 to November 2024 is $ 700 billion, Canada is the second major trading partner in the US. Amidst this period, US exports to Canada were $ 322 billion while imports were $ 377 billion.
If we talk about America’s main imports from Canada, then it includes petroleum products, natural gas, electricity, uranium, car, machinery, metal, gold, grain seeds.
In 2022, the US imported gold worth $ 2.15 billion from Canada.
After the announcement of 25 percent tariff from Trump, these things were going to be very expensive for American importers. Due to this, their value in the US market would have increased and inflation in America could have increased. Keeping these things in mind, Trump has softened and has postponed the proposal to put tariffs at the moment.
Not only this, after the announcement of tariffs by the US, Canada’s Prime Minister Justin Trudeau announced a 25 percent tariff on US imports.
This would also affect America’s trade as this decision would have made American products expensive for Canadian importers and they could stop importing from America. Or could reduce.
Now Trump has made this tariff out. Expressing relief on Trump’s decision, the American business organization Auto Care Association President and CEO Bill Hanvi told the BBC that the auto industry was relieved of this ban, but it is also cautious about unstable situations.
He defined America’s auto manufacturing as a ‘global industry’, saying that Americans are not looking towards other areas to make parts of the car.
After this decision, Trump wrote on Truth Social, “I am very happy with the initial results and the tariffs that were announced on Saturday will now be banned for 30 days. During this time it will be seen that an economic deals with Canada Whether or not. “
Canada-Mexico confident in removing Trump’s concerns
One reason for the softening of Canada-Mexico is not just an assessment of economic loss. Rather, sensing Trump’s attitude, he also said to stop illegal infiltration while removing Trump’s concerns.
Trump’s concern was about the Fantanil drug smuggling from the Canadian border. Due to which Americans were getting rapidly intoxicated. Canada has now said that it will appoint an officer to monitor the efforts to ban the smuggling of Fantanil drugs from the border.
Trudeau said on X that Canada would spend $ 1.3 billion on its border plan. New choppers will be purchased from these money and it will be spent in the deployment of soldiers on the technical and border.
He promised that the growing smuggling of Fantanil would also be stopped. The Canada-US joint strike force will be launched to keep an eye on the border for 24 hours, whose job will have to be dealt with organized crime, smuggling of Fantanil and money laundering.
Mexico also made the same promise in front of Trump. Mexico said that under the agreement with Trump, he has agreed to send 10,000 soldiers to the border. These soldiers will decide that there should be no illegal infiltration from this border to America.
In fact, apart from America’s auto industry, agriculture and manufacturing sector, other industries are also very dependent on triangular relations with Canada-Mexico. Recognizing this conflicting, Trump restrained his rhetoric and action to protect the US economic interests. The US could affect any half its business on these three countries.
Although the Trump administration had assessed this before imposing the tariff, Trump was so upset with the illegal infiltration that they are ready to withstand the pain so that America can be made great again.
-
-
-
-
