US President Donald Trump’s tariff plan has created a situation like a trade war worldwide, but Americans will also have to bear the brunt of this. Experts, in view of the tax being imposed by the US and other countries in reply, have predicted that this will increase unemployment and the Americans will have to face inflation. Economists have warned that Trump’s trade policies will increase prices, reduce production, supply supply and economic instability will come.
On Monday (March 3, 2025), before the tariff announcement of the US government, a document expressed concern that the increase in the tariff would affect the production. It was argued that if Trump increased the tariff for Canada and Mexico, the factory gate price of goods would increase, due to which the production will be affected. The factory gate price is priced before the tax of a goods is imposed.
Trump’s tariff plan will increase unemployment
CEO Candes Leaing, CEO of Canadian Chamber of Commerce, said that Trump’s decision is forcing the US and Canada towards recession, unemployment and economic disaster. He said that the tariff that Trump is imposing is tax for Americans. Candes said that Trump is talking about the beginning of the Golden Age of America, but his decisions will increase the cost for consumers and producers, which will disrupt the production and supply chain.
Americans will increase the burden
Trump’s tariff plan will be affected on a large scale. Food inflation is already a matter of concern for Americans. The US buys vegetables, fruits and frozen juices from Mexico at a large level. In 2023, the US bought 10 billion dollars of vegetables and $ 11 billion fruits and juices. Now the new tariffs will increase the house expenses of Americans. Apart from this, Americans will also fall on Americans to increase the incidence of Avecado, Beer, Tequila and food items coming from Mexico.
More than half of automotive vehicles, parts and engines used in the US are made in Mexico and Canada. The automotive sector will also be affected by Trump’s announcement.
The stock market shocked by Trump’s announcement
The impact of the reports of the tariff was also seen in the stock market. The stock market went down in a tremendous manner, while the safety-hevan bonds saw an increase. On Monday, the main stoke index of the US Wall Street fell down and closed at a very low late night. The S&P 500 closed at 5,850.31 points with a 1.75 per cent fall, while Nasdaq Composite fell by 2.64 % to 18,350. Dou Jones Industrial Average closed down by 1.47 % to close at 43,197.30.
China, Canada and Mexico also imposed tariffs on US imports
The US imposed a tariff on China, Canada and Mexico, after which these countries also imposed tariffs on the US import. The US has imposed a 20 per cent tariff on China, after which China has announced to impose an additional tariff of 10 to 15 per cent on the US import. On the other hand, after giving a month’s deferment to Canada and Mexico, the Trump administration imposed a tariff of 25 % from March 3. Canadian energy products have a 10 percent extra tariff. Canada has also imposed a 25 % tariff on American goods
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