Hold onto your seats, North America! The US is rolling out a game-changing 25% tariff on imports from Canada and Mexico, set to kick in on March 4, 2025, after a one-month delay. 📅 This isn’t just any tariff – it covers a whopping $918.54 billion in imports, the largest in world trade history, impacting nearly 28% of US imports globally.
Why does this matter? For starters, Canada and Mexico rely heavily on the US market, with 75% of Canada’s exports and 80% of Mexico’s going to the US in 2024. 🚨 A sudden 25% tariff is set to hit their exports hard, and it's not just them feeling the heat. The US economy could also take a hit, with potential rises in inflation and disruptions across the board.
But it's not one-sided. Canada and Mexico are ready to retaliate, which means US exports to these countries – a third of the US global market – might take a serious blow too. 📉
The USMCA agreement has kept the supply chain smooth with zero tariffs, but this unilateral move threatens to unravel years of trade harmony. Especially in the oil and gas sector, where Canada is a major supplier, accounting for 60% of US oil and gas imports in 2024. Even with a lower 10% tariff on oil and gas, prices for US manufacturers and consumers could rise, and Canada might even shift its market strategies. 🛢️💸
The ripple effects of these tariffs are set to reshape the North American economic landscape, impacting businesses, consumers, and the overall market dynamics. Stay tuned as this trade saga unfolds! 🌐🔥
Reference(s):
cgtn.com
