Trump used the same old tactic with Mexico and Canada.

President-elect Donald Trump threatened to implement a plan to impose tariffs on goods from Mexico and Canada, but the United States itself is also bearing the brunt of it.

Mr. Trump plans to impose tariffs on goods from Mexico and Canada. (Source: Kimt)

Economists and agricultural executives in the U.S. predict that prices for avocados, strawberries, and other fresh produce could rise next year, and consumers may face supply shortages.

That will happen when Mr. Trump implements his plan to impose tariffs on goods from Mexico and Canada.

The impact spreads across all sectors.

According to data from the U.S. Department of Agriculture (USDA), Canada and Mexico are the top two suppliers of agricultural products to the world's largest economy, with agricultural imports totaling nearly $86 billion last year.

Therefore, economists argue that imposing tariffs on food products from these two countries could have financial and operational spillover effects on the U.S. supply chain.

This also highlights Washington's dependence on agricultural products from these two neighboring countries.

On November 25th, Mr. Trump announced that he would sign an executive order on his first day in office as President of the United States (January 20, 2025).

Specifically, he will impose a 25% tariff on all products imported into the US from Canada and Mexico to curb the flow of illegal drugs and undocumented immigrants into the US.

Lance Jungmeyer, president of the American Fresh Produce Association, said that American consumers will feel the impact of this tax when shortages occur at grocery stores and restaurants.

He said, "We'll see fewer items at the produce counter. Restaurants will have to rearrange their menus in a way that allows them to use fewer fruits and vegetables or reduce portion sizes."

Meanwhile, the USDA revealed that about two-thirds of all US imported vegetables and 50% of imported fruits and nuts come from Mexico, with 90% of avocados, 35% of orange juice, and 20% of strawberries.

US trade data shows that avocado exports to the world's largest economy have surged 48% since 2019, as consumers increasingly add avocados to salads and sandwiches.

"The U.S. market accounts for approximately 80% of Mexico's total avocado exports, worth $3 billion last year," the USDA announced.

Alfredo Ramirez, governor of Michoacan state – Mexico's main avocado producing region – said: “Tariffs will create an inflationary spiral. Demand will not decrease, but costs and prices will increase. This will drive inflation up and have direct consequences for consumers.”

Sam Kieffer, Vice President of Public Policy at the American Federation of Farm Bureaus, assessed that this tariff could also drive up the price of imported fertilizers from Canada at a time when farmers are paying nearly 50% more for fertilizer than in 2020.

He said, "Now is not the time to create a shockwave in the agricultural economy."

Additionally, Trump's plan could also slow down the export of more than 1 million Mexican cattle to the U.S. across the border each year, which are essential for Washington's beef supply.

In recent years, American producers have reduced their cattle numbers, driving up beef prices.

Bill Bullard, CEO of the non-profit Ranchers Cattlemen Action Legal Fund United Stockgrowers of America (R-CALF USA), said these people could benefit if the tariffs lead to fewer imports of cattle and beef.

He said, "We are looking forward to the imposition of tariffs because it will help level the playing field for domestic producers."

The tariffs could also disrupt shipments of beef, dairy, and pork between the U.S. and Canada, potentially impacting producers in both countries.

"Donald Trump is ready to tweet threats of tariffs, often in the evening, after watching the news on Fox News. But ultimately, those tweets usually lead nowhere!" - expert Lincicome.

The US also got caught in the crossfire.

According to the latest USDA projections, the U.S. could face an agricultural trade deficit of over $42 billion in 2025, partly due to American consumers' interest in out-of-season produce and imported wine from Mexico.

Peter Tabor, a lawyer and senior policy advisor at Holland & Knight and a former USDA trade official, assesses that Trump's threat of tariffs could be a way to gain leverage with Mexico and Canada in the renegotiation of the US-Mexico-Canada trade agreement (USMCA), which is scheduled to be reviewed again in 2026.

However, Tabor asserted that the gradual imposition of tariffs by the world's largest economy over time could be seen as an unreliable trading partner, and importers of American goods would seek alternative sources of imports.

Not only will American consumers feel the impact of the tariffs, but businesses operating across borders will also be affected.

Scott Lincicome, a trade expert at the CATO Institute, said: "I don't think people fully understand the level of integration of the North American supply chain."

For example, in the American automotive industry, some parts, such as car seats, may be manufactured overseas before being ultimately assembled into a car produced in the United States.

He added: "That kind of seamless trade would be completely threatened by a 25% tariff, thus harming many American manufacturers and workers."

The same old trick, and it's not getting anywhere?

Under U.S. law, the president has broad authority to impose tariffs. Tariffs are a tactic that the 47th president used in the past.

During his first term, Trump imposed tariffs on numerous imported goods, often after lengthy reviews by the Commerce Department or the U.S. Trade Representative.

However, the new occupant of the White House has made more threats of imposing tariffs than he has actually done.

Expert Lincicome stated: "Donald Trump is willing to tweet threats of tariffs, often in the evening, after watching the news on Fox News. But ultimately, those tweets usually lead nowhere!"

Source: https://baoquocte.vn/ong-trump-dung-chieu-cu-voi-mexico-va-canada-mot-loi-de-doa-khong-di-den-dau-my-cung-dinh-don-295463.html