The elected president of the United States of America, Donald Trumpannounced this Monday the imposition of new 25% tariffs to imports from Mexico and Canada. According to Trump, these measures will be in force “until we stop the invasion of drugs and illegal migrants”.
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During his campaign, Trump had promised to implement double-digit tariffs as part of his strategy to protect the national industry, combat drug trafficking and irregular migration. According to DWTrump, on his social network Truth Socialreaffirmed that these actions will be a priority on his agenda if he returns to the White House. “On January 20, I will sign an executive order to impose a tariff of 25% on all products from Mexico and Canada. “There will be no grace period.”wrote.
Trump accused the government of Joe Biden to allow a “invasion” across borders, linking people migrants with crime and drug trafficking, “Thousands of people are crossing from Mexico and Canada, bringing crime and drugs to levels never seen before”he stated. Furthermore, he pointed out to fentanyl as one of the main concerns, insisting that tariffs will remain in place until this flow is stopped.
What are tariffs?
Tariffs are taxes applied to imported or exported goods, designed to fulfill economic and political functions, according to N+as they are:
- Trigger income governmental.
- Promote the competitiveness local by making foreign products more expensive.
- Regulate the trade international and balance the trade balance.
In Mexico, Tariffs are classified into three categories:
- Ad-value: It is applied as a percentage of the value of the product. For example, 10% of the price of a car.
- Specifics: A flat rate based on quantity, such as $2 per kilogram of sugar.
- Mixed: They combine both systems, with a percentage and a fixed amount.
This system searches adapt to market fluctuations and diversify tax revenues.
How do tariffs affect us?
Although tariffs serve a fundraising role and protect local producers encouraging internal consumption, they also generate side effects when used as political toolwhich could trigger effects such as the following:
- Increase product costs imported for American consumers.
- Damage chains key supply.
- Raise interest rates.
- Reduce competitiveness of strategic industries.
In Mexico, the most vulnerable sectors due to these effects would be the agricultural, automotive and of manufacturewhich They depend mostly on the US market.
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