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The government of the United States, under the administration of Donald Trump, has decided to raise tariffs to 50 percent (%) on aluminum and steel exports from Mexico and Canada, a move that puts both countries at a disadvantage compared to other exporters of these materials.
According to the agency EFE, the new levy consists of an additional 25% imposed this week by Trump, which adds to a previous 25% tariff on Mexican and Canadian goods, set to take effect on March 4. As a result, these nations will face a higher tariff than other countries, which will only be subject to the 25%.
Impact on Industry and Trade
The tariffs will come into effect on March 12, severely affecting the manufacturing industry in North America. Canada and Mexico are the main suppliers of steel and aluminum for the U.S., which could lead to an increase in production costs in sectors such as automotive, where components cross the border multiple times before final assembly.
Trump's goal is to revitalize the American manufacturing industry, but experts caution that the measure could have an inflationary effect on various sectors, in addition to straining trade relations with its main partners in the T-MEC.
Tariffs as a Political Tool
The president has defended his strategy, describing tariffs as "the most beautiful word in the dictionary," and using them as a tool for leverage on issues such as trade, migration, and security.
In addition to the taxes on Mexico and Canada, which support efforts at the borders to prevent additional tariff fees, last week the U.S. government imposed a 10% tariff on China, prompting Beijing to announce trade retaliation. It has also indicated plans for "reciprocal tariffs," aiming to match the rates that other countries impose on U.S. exports.
Just a few days ago, Trump also announced the imposition of a 25% tariff on steel and aluminum imports from around the world, aiming to protect the domestic industry and reduce foreign competition.
Reactions to this measure have been mixed: while the steel industry in the U.S. supports it, sectors such as automotive and technology warn about the impact on prices and the region's competitiveness.
Frequently asked questions about U.S. tariffs on aluminum and steel from Mexico and Canada
Why has the United States decided to raise tariffs on aluminum and steel from Mexico and Canada?
The objective of the United States, under the administration of Donald Trump, is to revitalize American manufacturing by imposing higher tariffs on imports of aluminum and steel from Mexico and Canada. Trump defends this measure as a strategy to protect the country's economic and national security.
When will the new tariffs on aluminum and steel take effect?
The new tariffs of 50% on aluminum and steel coming from Mexico and Canada will take effect on March 12, 2025. These tariffs include an additional 25% on top of a previous rate of the same percentage.
What will be the impact of these tariffs on the manufacturing industry in North America?
Tariffs will severely impact North America's manufacturing industry, particularly in sectors such as automotive, where components cross the border multiple times before final assembly. This could lead to an increase in production costs and strain trade relationships between the U.S., Mexico, and Canada.
How have Mexico and Canada reacted to the imposition of these tariffs?
Mexico and Canada have considered these tariffs a strategic mistake that will affect both their economies and that of the United States. Both countries are preparing responses and countermeasures to mitigate the economic impact of these tariffs.
What consequences could this measure have on global trade?
The imposition of higher tariffs by the U.S. could trigger a large-scale trade war, affecting global supply chains and raising costs for consumers. Experts warn that there could be an escalation in trade disputes, impacting the economic stability of North America and other global markets.
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