Mr Trump faced a backlash after imposing heavy tariffs on China, Mexico and Canada, raising concerns about rising prices and disrupting supply chains.
Under Mr. Trump's new policy, Canadian and Mexican goods to the US will be subject to a 25% tariff, while Chinese goods will be taxed an additional 10%. These tariffs will take effect from February 4 - Photo: AFP
Since initiating a trade war by imposing heavy tariffs on America's three largest trading partners, Canada, China and Mexico, on February 1, US President Donald Trump has faced a wave of backlash from business groups and some members of both the Democratic and Republican parties.
Shock to the US economy
Trade associations representing consumer goods, oil, food and autos have warned that Mr Trump’s new tariffs – which include a 10% levy on imports from China, 25% on all imports from Mexico and most goods from Canada – will force Americans to pay higher prices for consumer goods and disrupt supply chains.
"He is right to focus on big issues like the border and the fentanyl problem in the US, but not with tariffs. This will not solve anything but add economic burden to American households," said John Murphy, executive vice president of the US Chamber of Commerce (USCC) - the largest business organization in the US.
In addition, consumer product manufacturers also warned that Americans will have to buy goods at more expensive prices in the near future, while automakers also noted that tariffs will increase the cost of producing cars in the US, the Financial Times reported on February 2.
“Tariffs on all goods imported from Mexico and Canada, especially those not available in the United States, could lead to higher consumer prices and retaliation against the country’s exporters,” said Tom Madrecki, executive vice president of supply chain at the Consumer Brands Association of America.
Empty shelves with the words "Buy Canadian instead" after five top US liquor brands were removed from sale at a Canadian store as part of a protest move - Photo: REUTERS
Kim Clausing, an American economist, asserted that the new tariff policy that Mr. Trump imposed on Mexico, Canada and China would be "the heaviest tax the US has ever applied since the 1990s".
“We’ve gotten used to frictionless trade in North America, and that’s been the case for some people’s entire lives,” Clausing said. “So going from free trade to 25% tariffs is a really big change, and I think it’s going to be a big shock to the U.S. economy.”
Members of both parties oppose
The White House boss's new aggressive trade measures have also been heavily criticized by lawmakers.
“We understand and appreciate doing this to countries like China, but treating our close, long-standing allies like this is the least effective approach,” Republican Senator Tim Scott of South Carolina wrote on X.
Rand Paul, a Republican senator from Kentucky, also expressed his opposition on X: "Tariffs are just taxes. They reduce trade and increase prices."
Democrats also criticized Mr. Trump's new move.
"These ill-considered tariff policies are like using a sledgehammer when a scalpel is needed. The American people will pay the price," said Richard Neal, chairman of the House Ways and Means Committee.
Last month, the Peterson Institute for International Economics estimated that the sanctions Mr Trump has imposed could cause economic damage to all countries involved, including the US.
Accordingly, 25% tariffs on imports from Canada and Mexico could cause about $200 billion in damage to the US economy during Mr. Trump's upcoming term.
The increase in tariffs on Chinese goods would also cost the US $55 billion. Inflation in the US would also increase from there.
Source: https://tuoitre.vn/muc-thue-moi-cua-ong-trump-la-cu-soc-cho-nen-kinh-te-my-doi-mat-voi-phan-ung-du-doi-20250203110403606.htm
Comment (0)