President Donald Trump has imposed tariffs on imports from Mexico, Canada, and China, triggering immediate retaliation from all three countries. The tariffs include a 25% levy on Mexican goods, a 10% tariff on Canadian energy imports, and an increase to 20% on Chinese products.
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The move has raised concerns in the furniture industry, particularly due to China's significant role as a supplier. In 2023, Chinese imports in this sector totalled $25.5 billion. Additionally, Canadian lumber, widely used in U.S. construction, will be affected by tariffs.
China has responded with tariffs of up to 15% on U.S. agricultural exports and expanded restrictions on U.S. businesses. Canada announced tariffs on over $100 billion worth of American goods, while Mexico plans to introduce retaliatory measures soon.
Canadian Prime Minister Justin Trudeau criticised the U.S. action, stating that the country had 'launched a trade war against Canada' while simultaneously 'talking about working positively with Russia.' Mexican President Claudia Sheinbaum signalled a willingness to negotiate but confirmed that countermeasures would be announced.
Economists warn that the tariffs could significantly impact the U.S. economy. The Yale University Budget Lab estimates they will equate to a tax increase of up to $1.5 trillion over ten years, disproportionately affecting low-income households. Dartmouth College economist Douglas Irwin stated that the U.S. tariff rate would rise to its highest level since the 1940s.
Some Republican lawmakers have also voiced concern. Senator Susan Collins noted that her state of Maine relies on cross-border trade for industries such as seafood processing. Businesses near the Canadian and Mexican borders are bracing for price increases and disruptions.
Trump has defended the tariffs as a tool to address trade imbalances and illegal immigration, stating that tariffs are a "powerful weapon" that past politicians failed to use effectively.
Source: www.hfbusiness.com