New Tariffs Imposed on Goods Entering the US From Canada, Mexico, and China
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We have officially entered the ‘Find Out’ phase
Saturday, February 1, 2025
BREAKING News: Monday, February 3, 2025: Trump faces backlash from business as trade war sounds inflation alarm.
UPDATES: Mexico President Claudia Sheinbaum says US tariffs are on hold for a month after talks with President Donald Trump; Canada 'misunderstood'
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UPDATES: Mexico President Claudia Sheinbaum says US tariffs are on hold for a month after talks with President Donald Trump; Canada 'misunderstood' 〰️
Trump has given a range of reasons for imposing tariffs, including border security, inflows of drugs, and trade deficits - Canada has already introduced retaliatory tariffs.
Canada and Mexico move to retaliate on Trump tariff orders. Moments after Ottawa Premier Doug Ford announced that US companies would be banned from Ontario Government provincial contracts as a direct consequence of tariffs. America only has Donald Trump to blame.
Every year, the Ontario government and agencies spend $30 billion on procurement along with a $200 billion plan to build Ontario. US-based businesses will now lose out on tens of billions of dollars in new revenues.
Ontario, the most populous of Canada’s ten provinces and its industrial heartland, also announced on Monday that it was canceling a C$100 million ($68.12 million) contract with Elon Musk's Starlink. This decision is the latest response to the tariffs imposed by U.S. President Donald Trump.
‘Canada did not start this fight with the U.S., but you better believe we’re ready to win it’ ~ Doug Ford, Ottawa Premier.
The US president spoke to Canadian Prime Minister Trudeau to discuss the tariffs after the White House said Ottawa had “misunderstood” the situation. The two will speak again in a few hours.
LATEST UPDATE: Monday, February 3, 2025 | 5:12 PM EST.
Trump's sudden pause on tariffs with Canada and Mexico reveals uncertainty. While politicians may breathe easier with the halt in tariffs, the situation is more complicated.
Following an agreement to enhance border security, Canada plans to appoint a "fentanyl tsar," while Mexico will deploy 10,000 troops to the border as part of the deal with Trump. Canada is also facing increasing pressure to reduce its reliance on the United States and to reevaluate the nature of its cross-border relationship.
Buy Canada
Anger persists prompting calls for Canada to boost in-country trade while seeking more dependable international partners beyond the US.
China
China has placed counter-tariffs on US imports that will take effect on February 10.
Monday, February 3, 2025 | 7:30 PM EST.
Beijing hits back! China has announced retaliatory tariffs on certain American goods as U.S. tariffs on all Chinese products come into effect.
Beijing Strikes With Lightening Speed. China is not what it once was.
The Chinese tariffs due to begin on Monday would put a 15% import tax on US coal and liquefied natural gas, plus 10% on crude oil, agricultural machinery, pick-up trucks, and some sports cars. But there are signs that Beijing is in listening mode.
Donald Trump imposed new tariffs on goods entering the US from Canada, Mexico, and China. The US president signed an executive order putting a 25% tariff or tax on imports of all goods coming from Canada and Mexico to get both countries to crack down on illegal immigration and drug trafficking. Additionally, goods from China will be subject to a 10% tariff on top of existing tariffs until the country addresses fentanyl smuggling.
President Trump views his actions as a central part of his economic vision. He sees tariffs as essential for growing the US economy, protecting jobs, and increasing tax revenue. Which Economists largely viewed [statement] as misleading.
We have officially entered the ‘Find Out’ phase
Justin Trudeau, the Prime Minister of Canada, in his responses, announced retaliatory measures against the United States.
Canada is imposing a 25% tariff on $155 billion worth of American goods in response to the U.S. trade actions.
$30 billion worth of American goods will face immediate tariffs starting on Tuesday.
An additional $125 billion worth of American products will be subject to tariffs in 21 days, providing time for Canadian companies and supply chains to adjust and find alternatives.
Includes everyday consumer items like: American beer, wine, bourbon, fruits and fruit juices (specific mention of orange juice), vegetables, perfumes, clothing, and shoes.
It also includes major consumer products: household appliances, furniture, and sports equipment.
Canada is also targeting materials like lumber and plastics.
Canada is also exploring non-tariff measures related to critical minerals, energy procurement, and other strategic partnerships.
Talk about collateral damage
Some observers see Trudeau’s move as having done the math on how to respond. According to their observations, it will create food insecurity for Americans, bring car production to a halt, and worsen the current housing crisis in the United States.
The burden of tariffs can profoundly affect both the market and the everyday shopper
TRADE WAR
If a US importing firm chooses to pass the cost of a tariff onto consumers through higher retail prices, it is the American buyer who ultimately suffers the economic consequences.
On the other hand, if the importing firm decides to absorb the cost of the tariff without passing it on to consumers, it bears the economic burden itself, resulting in lower profits than it would have otherwise earned.
The leaders of Canada, Mexico, and China (L-R): Justin Trudeau, Prime Minister of Canada; Claudia Sheinbaum, President of Mexico; and Xi Jinping, President of China.
The day after imposing significant new tariffs on Mexico, Canada, and China
A day after imposing significant new tariffs on Mexico, Canada, and China, President Donald Trump acknowledged something that economists, members of Congress, and even some of his former aides have long been warning: Americans may have to bear the financial burden of these tariffs.
“THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!).”
The question on everyone's mind is who ultimately bears the economic burden of tariffs.
Theo Edwards for YAME DigitalPlease stay updated for ongoing developments. Refresh the article page for the latest information.
Mexico
Mexico's President, Claudia Sheinbaum, said in a post on X that she had also ordered retaliatory tariffs.
People walk along U.S. Route 101 during a protest against arrests and deportations of migrants by U.S. government agencies in Los Angeles, California
"I instruct the economy minister to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico's interests," she wrote.
China
China says it will take retaliatory measures against US President Trump’s new tariffs, saying fentanyl is ‘America’s Problem.’
China's Ministry of Commerce, meanwhile, accused the United States in a statement released Sunday of violating World Trade Organization rules with the tariff.
The ministry said China would file a lawsuit with the WTO against the United States and take "corresponding countermeasures to firmly safeguard its rights and interests."
“Next up for Tariffs? The EU!”
Mr. Trump stated to the BBC late Sunday that tariffs will definitely be imposed on the European Union over US oil and gas imports and could arrive 'pretty soon.' He noted that trade with the UK is ‘out of line,’ but believes a deal can be reached.
European Union warns it will retaliate if US President Trump imposes tariffs,.
RELATED
Prof. David Honig of Indiana University—Robert H. McKinney School of Law, wrote:
The Difference in the Negotiating Process: Distributive vs. Integrative Bargaining.
Distributive bargaining involves a competitive negotiation strategy where each party tries to maximize their own gain, often at the other party's expense. This approach is typically used when resources are limited, and the goal is to divide them.
In contrast, integrative bargaining focuses on collaboration between parties to achieve a win-win outcome. This strategy emphasizes mutual interests and aims to find solutions that satisfy both sides, allowing for greater value creation and a more sustainable agreement.
Understanding the distinction between these two bargaining styles is crucial for effective negotiation.
Distributive vs. Integrative Bargaining
Wonky Stuff
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