As the U.S. prepared to set tariffs for Canada and Mexico, both countries were ready to fight back with tariffs that would bring a heavy cost to the U.S. economy. Latest developments from the “America First Trade Policy” executive order mention a postponement of these harsh actions while a negotiation takes place. The 25% tariff that was going to be enforced on Feb. 1 is being delayed for thirty days while Canada and Mexico try to work out a deal to avoid a trade war from occurring.
President Claudia Sheinbaum of Mexico declared that her country would increase military on the border in hopes of stopping the fentanyl and immigration crises. Furthermore, she announced that Mexico would work with U.S. security personnel to prevent the trafficking of weapons.
Canadian Prime Minister Justin Trudeau has said that Canada will continue their spending plan for border personnel tackling the opioid crisis and use intelligence-gathering resources to track cartels, drugs and terrorists.
Both Canada and Mexico did not make much of an effort to reach an understanding with President Donald Trump. The “new” terms present themselves as the existing agreements already in place as the the North American Free Trade Agreement, later changed to the United States-Mexico-Canada Agreement. These agreements essentially have the same benefits as the recent proposal by Canada and Mexico.
The tariffs on these trade partners have caused much controversy. As Americans panicked over the possible price increase of eggs, Canadians vowed to steer clear from Tennessee Whiskey and Sheinbaum made fun of how useless the U.S. is in handling the trafficking crisis at the border, and blamed the U.S. for their inaction regarding the trafficking of weapons to Mexican cartels or Americans’ demand for drugs.
These responses from Americans, Canadians and Sheinbaum are valid responses to the current state of Trump’s irrational policy decisions. Trump’s illogical decisions have also caused concerns from economists who he refuses to take advice from. Considering their job is to study the economy, one would think that their opinion is reliable. Unfortunately, the government has become incompetent.
Until further notice, the price increase of groceries and auto parts will not be increasing more than the usual amount. It is important to stay informed about the current state of the country’s economy because it will affect how Americans afford their daily lifestyles.
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