What are tariffs, which countries is Trump targeting and will prices rise?

US President Donald Trump says he will announce the definitions of all steel and aluminum imports of the United States, as it reshapes America’s trade relationship with the world.

This step can have a special effect on neighboring Canada, which is the largest aluminum supplier for the United States. Trump also threatened to provide definitions later on other products from Canada, as well as Mexico.

It has already provided a 10 % tax on all products that enter from China – which responded to its own measures.

The US President says these import taxes are necessary to help the American economy and “protect” the country from illegal immigration and drug flow. Economists say they can raise the prices of Americans.

Customs duties are taxes imposed on goods imported from other countries.

Companies that import goods from abroad pay tariffs to the US government.

Trump presented a 10 % tariff on all goods from China. Therefore, the 10 -dollar product will have an additional $ 1 fee for it.

The president originally said that he would impose a 25 % tariff on goods from Canada and Mexico, but later agreed to stop them after the two countries agreed to enhance border security.

Celsius charging the value of the product is the most common type of customs tariff. Another type imposes a fixed personality on imports, whatever their value.

Trump is wearing a promise to the campaign to introduce import duties against some of the closest commercial partners in America.

He argues that the customs tariff will enhance the manufacture and protection of the United States – for example in the American steel industry – in addition to increasing tax revenues and developing economics.

He also sought to justify the definitions of minerals – which he also presented during his first term – as a issue of national security.

Trump also says he uses a customs tariff “to combat fentanel lesion”, a strong drug that causes tens of thousands of excessive deaths in the United States every year.

Its administration says that the chemicals used to make the drug come from China, while the Mexican gangs provide them illegally and have fentanel laboratories in Canada.

Canadian Prime Minister Justin Trudeau said less than 1 % of the entry of fentanel that enters the United States comes from his country.

Together, China, Mexico and Canada made more than 40 % of imports in the United States last year, making them some of the most valuable Trump trade partners.

China

A 10 % cost entered all the goods imported from China to the United States on February 4.

Beijing took revenge on its definitions that entered into force on February 10. This customs tariff includes 15 % on American coal and liquefied natural gas products, and a 10 % tariff on crude oil, agricultural machines and large engine cars.

China has repeatedly expressed its opposition to a new trade war that developed between the two countries during the first Trump presidency.

Canada

Trump stopped for 30 days a 25 % proposed tariff on all goods that enter Canada – which was also scheduled to start on February 4.

Canada also stopped its 25 % revenge tariff, at a value of $ 155 billion ($ 107 billion; 86 billion pounds) of US imports.

In exchange for Trump’s stop, Canadian Prime Minister Justin Trudeau said that Canada is carrying out a “1.3 billion dollar border plan” to add “new helicopters, technology and employees to the border”, in addition to “increasing resources to stop the flow of fentanel.”

A large part of the border security plan has already been announced in December.

Trump said the delay will allow the United States to see “whether or not an economic deal with Canada can be reached.

Mexico

The proposed definitions were also delayed by 25 % against Mexico in a month, as well as Mexico measures against American goods.

Mexico President Claudia Xinbum has agreed to send 10,000 members of the National Guard to the US -Mexican border “to prevent drug trafficking, especially fentanel”.

President Shinbom said that the United States has in turn agreed to increase measures to prevent trafficking in high American weapons to Mexico.

During the time of Trump in his post, the least restricted tariff applied to China. This time, the definitions appear to apply to all goods from China.

If the measures against the goods are from Mexico and Canada at the end, it is expected to become a group of more expensive items.

Car manufacturing can bear the effects of definitions.

Cross the parts of the American, Mexican and Canadian border vehicles several times before the car is fully assembled.

TD ECONOMics suggested that the high price of the car in the United States may increase by $ 3,000 due to import taxes.

Other goods include Mexico that can be affected by fruits, vegetables, spirits and beer.

Canadian goods such as steel, wood, grains and potatoes are likely to receive the price of consumers.

Canadian energy will be targeted by 10 % instead of 25 %.

Trump told the BBC that the UK was behaving “outside the line”, without providing more details, but suggested that a solution could be “solved”.

The UK’s business minister, Jonathan Reynolds, said that the UK should be excluded from the customs tariff because the United States exports more products to the UK more than its import.

The UK exports pharmaceutical products, cars and scientific tools to the United States.

Trump also said he could impose a tariff on the European Union “very soon”, because “they take almost nothing [from the US] We take everything from them. ”

Last year, the United States had a commercial deficit of $ 213 billion with the European Union – which Trump described as “atrocity.”

The European Union said it will “respond firmly” to any tariff. American companies, Harley Davidson, which manufacture motorcycles, and whiskey, faced the European Union’s Jack Daniel’s tariff.

Economists have warned that customs tariffs are likely to raise consumer prices.

For example, sellers may raise the price of the goods they import if they are forced to pay higher duties.

From 2018 to 2023, the customs tariff for imported washing machines witnessed a 34 % increase in the price of washing equipment, according to official statistics, before they decreased as soon as the definitions are over.

Some experts suggest that these new definitions can push a wider trade war and exacerbation of inflation.

The Capitol economy said that the annual inflation rate may rise from 2.9 % to 4 % due to the newly announced definitions.