Donald Trump faced a reaction from the groups of companies and some in his own republican party after launching a trade war by imposing steep rates on the three largest trade partners in the United States.
Professional associations representing consumer goods, petroleum, grocery and car manufacturers have lined up to warn that Trump’s new prices – which included 10% prices on imports from China, 25% on all ‘Canadian energy – would increase the prices of ordinary Americans and cause chaos in supply chains.
“The president is right to focus on major problems such as our broken border and the scourge of fentanyl, but the taxation of prices. . . Will not solve these problems and will only raise prices for American families, “said John Murphy, main vice-president of the US Chamber of Commerce, the largest business group in the United States.
Consumer products have warned that Americans would see more expensive grocery products, while car manufacturers have warned that prices would increase the cost of vehicle construction in the United States.
“Prices on all goods imported from Mexico and Canada – in particular on ingredients and inputs that are not available in the United States – could cause higher consumer prices and reprisals against American exporters”, said Tom Madrecki, vice-president of the resilience of the supply chain at Tombrecki, vice-president of the resilience of the supply chain at Tomrecki Tom of the resilience of the supply chain at Tomrecki, vice -President of the resilience of the supply chain at Tomrecki Tom resilience of the supply chain at Tomrecki at the resilience of the supply chain at Tomrecki to the resilience of the supply chain Tomrecki with the resilience of the supply chain at Tomrecki to the resilience of the supply chain at to the consumer brands association.
Kim Clausing, principal researcher at the Peterson Institute, said that prices would represent “the highest increase in tax since the 1990s”.
“We are used to having a trade without friction in North America. And that happens throughout the lives of some people, “said Clausing.
“So going from 25% free trade to be quite dramatic and I think it will lead to a huge shock for the American economy.”
Trump imposed high prices in Canada, Mexico and China on Saturday, catapulting economic nationalism at the top of its program while swinging against the American trade deficit with its business partners.
In response, Canadian Prime Minister Justin Trudeau has announced 25% of $ 155 billion Canadian dollars (107 billion US dollars), including American alcohol, clothing, household appliances and wood.
Mexico President Claudia Sheinbaum was soon to announce the rates also after being notified of reprisal measures.
Trump intensified his attacks on American trade partners on Sunday, going to social networks to rail against the American trade deficit and repeat his request that Canada becomes “a 51st state”.
“We pay hundreds of billions of dollars to subsidize Canada. Why? “He posted on Truth Social.
“There is no reason. We don’t need anything they have. We have unlimited energy, should make our own cars and have more wood than we can never use. Without this massive subsidy, Canada ceases to exist as a viable country. Hard but true! Therefore, Canada should become our 51st darling state. »»
The new aggressive trade measures have been criticized by legislators, including Tim Scott, the republican senator of South Carolina, who called them “nothing more than a tax on South Carolinians”.
“I understand and appreciate the desire to take the dubious actions of countries like China which breach and constantly ignore the rules, but to treat our close and long -term allies in the same way is at best unproductive,” wrote Scott on X.
Congress Democrats criticized Trump’s decision.
“These reckless prices take a hammer where a scalpel is necessary, and the American people will pay the price,” said Richard Neal, the best democrat of the House of Representatives supervising trade policy.
“Targeted and thoughtful measures aimed at specific industries can protect American interests and workers and demonstrate in -depth development of policies,” added Neal. “This is not what the president does.”
The Peterson Institute said last month that Trump’s threatened sanctions would cause economic damage to all countries involved, including the United States.
The 25% tax on imports from Canada and Mexico would result in about $ 200 billion in the US economy for Trump’s term, he said. The blow in the United States from higher prices on Chinese imports would be $ 55 billion. American inflation would also increase.
Ed al-Hussainy, principal interest rates and currency analyst at Columbia Threadneedle, said the United States had “undertake the most risky pricing strategy, with a high probability of reprisals”.
“I expect a tightening of financial conditions from this week – think of withdrawal from actions, wider credit differences – because risk markets must now assess” prices are a scenario of negotiation tactics And the price more lower risk, “he said.
Goldman Sachs research analysts wrote on Sunday when “it is more likely that the prices are temporary” because of their potential economic impact and the White House which establishes general conditions for their withdrawal.
The investment bank had previously estimated that a long -term rate of 25% on imports from Canada and Mexico would increase the basic prices of personal consumption expenditure by 0.7%.
Additional reports from Claire Jones to Washington and Harriet Clarfelt in New York
