Alicia Nichols
How much time to become an international trade analyst! That was my first idea after reading The latest memorandum On February 1, 2025, it announced cleaning fees to Canada, Mexico, and China, the largest trade partners in the United States. President Donald J. Trump, famous for using tariffs as a tool for geopolitical purposes, justified these latest measures. International Emergency Economic Law (IEEPA)。 The law signed in 1977 can regulate commercials after the president has declared a state emergency.
These aggressive trade movements, the latest movement of Trump American First Trade Policy 2.0He has fulfilled his promise in the trajectory of the campaign, expanding his first term tariffs in China (mainly maintained by President Biden). In his first term, he also announced 10 % of the 25 % tariffs on steel imports, the European Union (EU), Canada, and Mexico imports. Canada and Mexico are not the largest trade partner in the United States, but their treaty partners. US-MEXICO-CANADA contract (USMCA)The contract is scheduled to be replaced in the North American Free Trade Agreement (NAFTA) during the first term of Trump, and a review is scheduled in July 2026.
What do these new tariffs include?
Yesterday, President Trump announced an additional fee for imports from Canada and Mexico and 10 % of additional duties on imports from China. He also pledged to increase these tariffs when these countries retaliated.
Of course, this movement damages these countries and affects manufacturers and work. However, Trade 101 means that customs duties mainly impose national consumers. In this case, it is the United States! Every year in USMCA countries, billions of dollars are conducted, especially in cars, agriculture, textiles, and other industries, there are closely woven supply chains. In fact, US products and services are traded with USMCA. total According to the US Trade Representative (USTR), an estimated $ 1.8 trillion in 2022. This means that many of the products on American shelves come from these countries, or are made in inputs procured from these countries. Therefore, American manufacturers pay higher costs to raw materials and intermediate goods procured from these countries, and pay for business costs that are likely to be taken over by consumers. The final result is that American shoppers and companies pay higher prices to everyday products. Incorporating these costs is an ironic situation, given that the Americans are said to be one of the reasons they voted for President Trump.
On their side, both Canada and Mexico announced their own retaliation measures yesterday. Canadian Prime Minister, Justin Toldo, announcement At a press conference last night, there were 25 % of the Canadian dollars of US products, but Mexico’s President Claudia Symbaum showed Mexico. I will implement it Similarly, retaliation measures.
Trump is also so Intimidated Attack Colombia over Colombia’s claim to be returned to hit the EU with tariffs and returned with Colombia’s dignity. The world’s trade war in the world, as warned by the International Currency Fund (IMF) in October last year, even before Donald Trump was re -elected, in the threat of tariffs he did on the trajectory of the campaign. , Threats the economic stability of the world.
They also hit the Caribbean consumers
Caribbean manufacturers who depend on the input in the United States may face higher prices and business costs, but consumers may spend more on American foods, cars, and electronic equipment. However, there is a way to fight this as much as possible. Caribbean manufacturers need to continue exploring alternative suppliers to relieve these possible prices as much as possible. This situation also claims more caribbean procurement. After all, instead of procuring many fresh fruits from Florida, we can further procure them from the region.
Final thoughts
Trump’s tariffs may be for Canada, Mexico, and China, but the ripple effects are far beyond prices, business costs, supply chains confusion, and economic uncertainty. I feel like I am. Our work as a trade analyst is to support the caribbean company and the government, and to be ready to adapt to the more unpredictable global trade environment. It is important.
Alicia Nicholls, B.SC., M.SC., LL.B. He is an international trade specialist and founder of the Caribbean Sea Trade Law. See the details of her work on http://www.caribbeanTradelaw.com.
