He US dollar is weakening Today, in the midst of growing concerns that Donald Trump’s policies could push the US economy to a contraction and possibly to a full -fledged recession. The entry into force of tariffs to products from Mexico and Canada for 25% and China for 20% They had already revalued the euro and the pound against the dollar, while the stock market received with a sharp fall this protectionist policy of the United States against its commercial partners.
Trump’s ads that had been contradictory and resembled threats to negotiate with their partners in better conditions for the United States, left doubts about whether effectively on Tuesday they were going to enter into force. This finally happened, unleashing an earthquake in the markets with the simple confirmation that what was announced would be met. The Nasdaq suffered a 2.6%setback, while the Standard & Poor’s 500 index fell 1.8%. The Canadian dollar and the Mexican peso quoted down. Asian bags also opened with strong falls.
Customs authorities published guides to apply these new import taxes that began to govern since 0:01 on Tuesday. These are the highest tariffs between the United States, Mexico and Canada in many decades, and that In the facts the Free Trade Agreement (T-MEC) that had been designed by Trump himself.
The entry into force of tariffs implies a DIRECT DISTORTISION TO SUPPLY CHAINS, MAKING THE PRICES OF GOODS, RAW MATERIALS, INDUSTRIAL AND CONSUMPTION PRODUCTS, including foods that cross the border. In recent weeks American consumers already began to feel a strong increase in the price of eggsand that was only the beginning of those who can continue as an inflationary wave on basic consumer goods.
There is no doubt that Trump has been using the tariff threat to negotiate different topics With its commercial partners. In the case of Mexico and after the excuse of fentanyl, there negotiated with the government of Sheinbaum the mobilization of troops and police to fortify the border and control migration, while permanent denigration to Canadapointing it as a future state number 51 of the United States, seeks what it considers a “Reparation” for military aid and for commercial balance. This permanent degradation, not only towards the resigned prime minister Justin Trudeau, but to all Canadians caused a kind of nationalist reaction with a boycott campaign to American products that have become very strong.
In other words, the imposition of Tariffs since Tuesday are a foot shot for an American administrationwhich won the elections after a strong promise to improve economic rates and lower the prices of basic products. After the name of “Trumpcession” or “Trump Recession”, inflation expectations have been shot, consumers’ confidence has fallen, the commercial deficit has run over the acceleration of exports and several indicators point to an economic weakening.
China, on the other hand, announced that it filed additional complaints before the World Trade Organization after the start of tariffs. And so much China as Canada released retaliation measures: China announced on Tuesday that it will impose new tariffs to a series of agricultural imports from the United States next week. His Ministry of Finance said that additional 15% tariffs will be imposed on chicken, wheat, corn and cotton, and additional 10% tariffs to sorghum, soybeans, pork, beef, beef, aquatic products, fruits, vegetables and dairy products. While the Canadian Prime Minister Justin Trudeau said that Ottawa would respond with immediate 25% tariffs on US imports worth 30,000 million Canadian dollars (20.7 billion US dollars). He had previously said that Canada would point to beer, wine, bourbon, appliances and Florida orange juice in the United States.
In the middle of the strong shaking of international markets and the weakening of the dollar against other currencies, Trump’s tariffs hit their own electoral base that, according to the latest surveys, is not happy with Trump’s priorities or with Elon Musk’s actionsthat graph as an excessive by the rich about the government.
According to the Peterson Institute of International Economics, a group of experts estimated that the new tariffs would cost the American typical household more than $ 1,200 each year, Enough to unleash fury towards the Trump administration.
Source: www.laizquierdadiario.com
