Trump definitions threaten to raise the global economic system

President Trump is moving at the end of this week to slap the full customs tariff for Canada, Mexico and China threatening to break the global trading system and the global economic system that was about an American economy that defines open investment and free markets.

The speed and scope of the import duties that Mr. Trump revealed on executive orders on Saturday pushed widespread criticism from many legislators, economists and business groups, who attacked the procedures as economic miscarriage. They warned that the customs tariff, which was imposed in response to Mr. Trump’s concerns about the smuggling of fentanel and illegal immigration, could tighten inflation, charge American industries and make China a more powerful global commercial center.

On Sunday, Mr. Trump defended the definitions, while admitting that there may be some negative consequences.

“Will there be some pain? Yes, maybe (and maybe no!),” He wrote on social media.

Executive orders mean that on Tuesday at 12:01 am, all goods imported from Canada and Mexico will be subjected to a 25 percent tariff, with the exception of Canadian energy products, which will face a 10 percent tariff. All Chinese goods will also face a 10 percent tariff.

Canada and Mexico pledged to take revenge quickly with their own tariffs, and China said Unlimited “counter measures” will continue to protect their interests.

Speaking of Newsnation on Sunday, the chief trading advisor told Mr. Trump, Peter Navarro, that the definitions are unlikely to stop at the last minute.

“The size of this particular problem is huge,” said Mr. Navarro, referring to the drugs entering the United States and killing the Americans. “It is time to stop the massacre.”

Although Mr. Trump’s tariff was clearly raised for several months, it was wider than many analysts expected. The major economic assistants of the president, including Treasury Secretary Scott Pessant, defended the use of definitions, but they suggested that they be used as a tool for negotiations or that training should be training gradually to allow companies to adapt.

“The customs tariff pistol will always be loaded and at the table, but it is rarely discharged,” said Mr. Pesin in a letter to the main hedge group partners last year.

But Mr. Trump did not hesitate to use customs tariffs as a weapon against the largest commercial partners in America, imposing comprehensive fees on everything from car parts to avocado.

Economists said that the pain of the escalating trade war could come in the form of a slower economic growth and higher prices.

“The resulting inflation in the United States of these definitions and other future measures will come faster and be greater than we initially expected,” said Paul Ashworth, senior economists in North America in Capital Eightingx.

Mr. Trump uses the national security law that is rarely published, known as the International Economic Forces Act, to justify the imposition of customs duties on countries that have trade agreements with the United States.

During his first term, Mr. Trump prompted the re -writing of the Free Trade Agreement in North America, which he criticized as a “worse” commercial deal, and eventually signed the United States, Mexico and Cananga agreement. It also reached a commercial deal with China asking Beijing to purchase a certain level of products from the United States. These promises have not been fulfilled.

Mr. Trump Legal logical basis The definitions are likely to be challenged in American courts. Other countries can also discourage trade agreements with the United States for fear that the president can arbitrarily destroy it using his powers in emergency situations.

“If the president is able to stroke, and for any good reason, collect the supply chain in North America for more than 30 years, then why is the foreign government ready to spend all the political capital needed to enter into a commercial agreement?” Said Scott Lincum, Vice President of the Economy Trading at the Kato Institute, which supports free trade.

Mr. LINCICOME added that the uncertainty that the United States was only exceeding international trade for China, which Republicans and Democrats are largely viewed as an economic opponent.

Mr. Trump has already threatened to impose a global tariff on all imports, as well as additional fees in the European Union. These moves can encourage more countries to deepen economic relations with China. While the customs tariff can already prevail in China, the disruption of US supply chains and Mr. Trump’s plans to retract investment in clean energy and electric cars can ultimately benefit the second largest economy in the world.

“Beijing has long looked for ways to push pegs between the United States and its allies, and definitions related to the closest partners in America,” said Jonas Naham, a professor at Johns Hopkins College for advanced international studies and previous industrial policy. Economic in the Biden Administration.

In theory, Congress can try to take action to overcome definitions, but there is no political will for such an effort.

Democrats, who also tend to adopt protective trade measures, criticized the actions of Mr. Trump as reckless but have little effect because they are in the minority in Congress. “It will be good for Donald Trump to start focusing on lowering prices instead of rising,” said Senator Chuck Schumer, a democratic in New York and the leader of the minority.

Most Republican lawmakers, who have deep concerns about the definitions, were silent or seemed to be in line with Mr. Trump. Among the few opponents were Senator Rand Paul, the Republican in Kentucky.

“Conservatives are once united against new taxes,” said Mr. Paul on social media. “The imposition of taxes on trade means less trade and high prices.”

The actor without Bacon from Nebraska, who represents an area that Kamala Harris won last year and is still one of the most vulnerable Republicans in the House of Representatives, also expressed his doubts about politics. He said he was confused about using definitions to negotiate a better trade deal with Canada.

“We already had a trade agreement and it was a good trade agreement,” said VCN. “It is difficult for me to drink this circle. We’ll see what effects are in the next two weeks, it may be an opportunity to rethink that we are at that point.”

Mr. Bacon did not criticize Mr. Trump explicitly, but he tried to provide some advice he made carefully. “I would like to suggest focus on China and Russia,” he said.

The reaction was from the main industry groups that were preparing for definitions less restricted. American spirits, cars and agricultural products are all mature goals for revenge against Canada, Mexico and China, and the reprisal tariffs of the American economy can deal.

Large pressure groups urged the Trump administration to consider other ways to address border and fentian fears and warned that the customs tariff would only harm American workers and companies.

“Ultimately, manufacturers will bear the burden of these definitions, undermining our ability to sell our products at a competitive price and put American jobs at risk,” said Jay Timmons, President and CEO of the National Factory Association.

Representatives of agricultural interests, which were among the most difficult strikes during commercial wars in the first term of Mr. Trump, warned on Sunday that Mr. Trump had placed the sector in a “difficult place”.

“The farm and farm families answer the invitation to feed the families of America and the world, and the promised definitions and revenge will put more pressure on their livelihoods,” said Zabi Doufal, head of the US Farm Office Federation.

Annie Carne The reports contributed.