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US consumers face the possibility of larger prices for popular goods such as tomatoes, avocados and tekkes after Donald Trump’s decision to stinging the imports of imports from China, Mexico and Canada.
The potential price indicates a political risk that Trump takes over in a trade policy that could increase the costs of wide consumption goods after the presidential elections in which voters expressed frustration with high inflation.
The tariffs return to similar actions during Trump’s first term, but this was during the period of moderate inflation and the current measures were higher.
“I can imagine that traders can absorb tariffs in the short term, but I think they will increase with such fast tariffs,” said Amit Khandelwal, a professor of global affairs and economics at Yale University.
China, Mexico and Canada are three of the largest shopping partners in the United States, responsible for about 40 percent of the country store. Now the largest market is a tekke. Mexico and Canada are among the largest suppliers of agricultural products, including tomatoes and Avocado – between 2019 and 2021 nearly 90 percent of all avocado shipments to the United States comes from Mexico.
“You feel the pain of these prices is increasing when you have no good replacement,” Khandelwal said. “Super Bowl is coming, people like to eat guacamole. It could be simple if there is no really good replacement for that.”
China sells US machines and mechanical equipment worth tens of billions of dollars a year that enter any number of popular devices, from TV to iPhone.
“We still do not know how China will react to an additional 10 percent of tariffs, but this is most likely to be retaliation and lead to even more consumer prices,” said the son of Golar, the assistant supply chain and operating operations in the country of Georgia State University Business School.
Some influence will compensate for the weaker Mexican Pezo and the Canadian dollar, but Trump has at least nodded in inflation risks, placing a 10 percent 10 percent of the tariff on energy resources from Canada, which is the highest introduction to the US from the country.
Morgan Stanley Economists warned that the influence of tariffs would first appear in higher inflation, with the lag of economic activity. They warned that this could delay any action of the policy of the US federal reserves to lower interest rates.
“If we are right that wide tariffs on Mexico, Canada and China will strengthen inflation before slowing down the activities, then the Fed could be aside for a while,” Morgan Stanley wrote in a note on Sunday.
The White House announced that the tariffs aimed to put pressure on three countries to fight illegal immigration and drug flow such as fental in the United States, popular questions among US voters.
Hope that the signs of these numbers in the trend in the desired direction could mean that the tariffs are raised quickly or compared back.
In Canada, the most neat influence will be seen on the shelves of alcoholic beverage stores. Most provinces sell alcohol through state stores, and several have ordered them to make their traders out of the importance of American alcohol from sale starting on Tuesday.
Doug Ford, Prime Minister Ontario, said his alcoholic beverage stores sold nearly $ 1 billion in US products a year. Ontari’s ban will mostly cut off the market of about 16 million people for US manufacturers. The ban on British Columbia will aim to alcohol introduced from the “Red States” under the guidance of Republicans, according to Prime Minister David Eby.
The Canadian Federal Government posted a list of 1,256 products on Tuesday, which will be hit in the first round of retribution on Tuesday.
Poultry and dairy products, fresh fruits and vegetables, wooden and paper products, including toilet paper, as well as some produced goods such as washing machines, pajamas and handbags.
Ministers hope that customers will be able to transfer international or domestic alternatives to the goods, while working on details of a far -reaching Tariff response.
Canadian officials said that the list of goods was conceived to mobilize election units in the United States, which had an impact on Trump, including exporters in countries led by Republicans. These include products such as orange juice with florida and devices made in South Carolina and Ohi.
Additional reporting Christine Murray in Mexico City
