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CNN: Donald Trump can do incredible damage to Mexico and Canada with one signature

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US President Donald Trump can drive his neighbors into a recession with one stroke of the pen – he pointed out the CNN station, which referred to the possible imposition of the previously announced duties on Mexico and Canada.

“January 20 (…) I will sign all the necessary documents to impose a 25 -percentage on Mexico and Canada. Donald Trump in an entry on social media.

Donald Trump and potential damage to Mexico and Canada

According to CNN, Trump threatened that the 25 % duties would be introduced on February 1, if both countries do not stop drug supply, in particular fentanyl, and the influx of migrants to USA. According to the American portal, “Trump can cause incredible damage to Mexico and Canada with one signature.”

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Rapid increase in duties on Canada and Mexico It would threaten to start a full -size trade war – emphasized CNN.

He added that raising rates would quickly lead the economy of Canada and Mexico into a recession, and in the US would probably increase the prices of car, gasoline and imported goods.

What would be the influence of Trump's decision?

According to the Peterson Institute for International Economics analysis $ 200 billion from American GDP$ 100 billion from a smaller Canadian economy and would reduce by 2 percent Economic growth indicator in Mexico – wrote CNN.

He added that according to analysts, “these duties would hurt all economies, including the USA”.

– It would be a real trade war, not a commercial skirmish. This is a serious matter. We would see the loss of work and loss of houses – the main economist of RSM Joe Brusules, quoted by CNN, pointed out by CNN.

According to analysts, Trump is bluffing

Analysts of the Goldman Sachs Investment Bank Goldman Sachs said to their clients that the imposition of duties is unlikely, and the chance to impose them is only 20 percent.

“We note that in 2019 (Trump – ed.) He also stated that he would impose a 25 % duty on Mexico within 10 days, but he never did it” – reminded GS.

Trump may also change his mind and not impose duties if both countries agree to start talks this year about the renegotia of the conditions of the US-Massyk-Tanada (USMCA) agreement. This trade agreement, according to earlier assumptions, is to be reviewed until July 2026 – said CNN.

Source of the main photo: PAP/EPA/JIM LO SCALZO/POOL



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