The United States Is In Multiple Trade Wars | Everything You Need To Know

The United States is now in multiple trade wars and here is everything you need to know. This is a lengthy article, one that will go through everything you may have missed. If you want to support my work and receive access to exclusive lives and other content, the best way to do so is by becoming a paid subscriber today.

Trump’s Tariffs

Earlier today, Donald Trump signed an executive order imposing tariffs on Canada, Mexico, and China. The executive order mandated the imposition of 25% tariffs on all Canadian exports, excluding energy exports, 25% tariffs on all Mexican exports, and 10% tariffs on all Chinese exports. Canadian energy exports will face a 10% tariff. These tariffs are being imposed on top of already existing tariffs. The executive order will officially take effect on February 4th.

Mexico’s Response

Following Trump’s tariffs, Mexican President Claudia Sheinbaum issued a lengthy response and ordered her Finance Minister to impose tariffs on United States goods. In her response she did not specify the amount of tariffs or which goods will be targeted. It will likely be blanket tariffs on American goods, however. In a lengthy statement, which I translated for you here, Sheinbaum stated:

We categorically reject the White House's slander against the Mexican government of having alliances with criminal organizations, as well as any intention of intervention in our territory.

If such an alliance exists anywhere, it is in the United States armories that sell high-powered weapons to these criminal groups, as demonstrated by the United States Department of Justice itself in January of this year.

In four months, our government has seized more than 40 tons of drugs, including 20 million doses of fentanyl. It has also arrested more than ten thousand people linked to these groups.

If the United States government and its agencies wanted to address the serious consumption of fentanyl in their country, they could, for example, combat the sale of narcotics on the streets of their main cities, which they do not do, and the money laundering generated by this illegal activity that has done so much harm to their population.

They could also start a massive campaign to prevent the consumption of these drugs and take care of their young people, as we have done in Mexico. Drug consumption and distribution is in their country and that is a public health problem that they have not addressed. In addition, the synthetic opioid epidemic in the United States has its origin in the indiscriminate prescription of drugs of this type, authorized by the Food and Drug Administration (FDA), as demonstrated by the lawsuit against a pharmaceutical company.

Mexico does not want confrontation. We start from collaboration between neighboring countries. Mexico not only does not want fentanyl to reach the United States, but anywhere. Therefore, if the United States wants to combat criminal groups that traffic drugs and generate violence, we must work together in an integrated manner, but always under the principles of shared responsibility, mutual trust, collaboration and, above all, respect for sovereignty, which is not negotiable. Coordination, yes; subordination, no.

To this end, I propose to President Trump that we establish a working group with our best public health and security teams.

Problems are not resolved by imposing tariffs, but by talking and dialoguing, as we did in recent weeks with your State Department to address the phenomenon of migration; in our case, with respect for human rights.

The graph that President Trump has been posting on social media about the decline in migration was created by my team, which has been in constant communication with his.

I instruct the Secretary of Economy to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico's interests.

Nothing by force; everything by reason and right

Canada’s Response

Canada has decided to impose retaliatory tariffs on the United States following Donald Trump’s decision. First, various provinces have imposed their own restrictions with both British Columbia and Nova Scotia announcing that they would be removing American made alcohol from their shelves. The British Columbia will specifically limit this removal to just red states. Nova Scotia, issued a lengthier list of restrictions stating:

"First, Nova Scotia will limit access to provincial procurement for American businesses. We will look for opportunities to cancel existing contracts and will maintain the option to reject bids outright because of President Trump’s unlawful tariffs. Second, the cost of tolls at the Cobequid Pass will double for commercial vehicles from the United States, effective Monday, February 3. Finally, we will direct the Nova Scotia Liquor Corporation to remove all alcohol from the United States from their shelves effective Tuesday, February 4."

Meanwhile, Canadian Prime Minister Justin Trudeau announced a set of restrictions on behalf of the entire nation. According to Trudeau, Canada will impose 25% tariffs on $155 billion worth of American goods. $30 billion worth of tariffs will begin on Tuesday, while the remaining tariffs will be imposed in 21-days time to allow for Canadian companies to find alternative supply chains. These tariffs will be imposed on everyday items Americans rely on including beer, wine, bourbon, fruit, fruit juice, vegetables, clothing, and shoes.

China’s Response

China has yet to issue a proper response to the tariffs. If China does, I will update this article in the coming hours and days.

Goods to be impacted

Canada

• Dairy: Tariffs on Canada will impact its dairy industry and will affect the prices of items like milk, cheese, and butter in the U.S.

• Lumber/Building Materials: Canada is one of the largest suppliers of softwood lumber to the United States, and tariffs on Canada will raise the cost of construction and housing. This means it will cost more to do renovations.

• Cars and Car Parts: The U.S. and Canada have extensive trade in automotive goods, and tariffs can impact both finished vehicles and parts.

• Energy/Gas: Canada provides a large amount of oil and natural gas. Tariffs on energy-related products could affect gas prices.

• Fish and Seafood: Tariffs could affect imports of fish and seafood products from Canada, which means that you will pay more at the grocery store.

Mexico

• Produce: Mexico is one of the largest exporters of produce to the United States. That means the cost of fruits, vegetables, and other agricultural products to the U.S. Specifically, get ready to pay more for avocados and tomatoes.

• Cars and Car Parts: Like Canada, Mexico supplies a large amount of vehicles and auto parts to the U.S.

• Beer and Tequila: Mexico imports a lot of beer and tequila. A tariff is akin to a Trump tequila tax.

• Electronics: Mexico manufactures electronics, including televisions and other consumer electronics.

China

• Electronics: A large number of electronics, including smartphones, laptops, and televisions will see their prices raised.

• Furniture: China currently exports a significant amount furniture and furniture parts to the United States.

• Clothing and Textiles: A large portion of the apparel and textile products in the U.S. are imported from China.

• Toys: Tariffs will lead to higher prices for toys in America.

Let me know if you have any questions. If you want to support my work, become a paid subscriber today.

Aaron Parnas