Although President Donald Trump aims to increase foreign investment and build in domestic product in the United States through tariff threats, the major trading partners are not in the very best spot. Here is what you should know about:
- Mexico’s President Sheinbaum expressed his concern over the excessive cost of building the product in the US, especially for auto manufacturing, while he’s still looking forward to seeking further discussion with the US president this week on Thursday. Mexico’s tariff response will be on Sunday after this discussion. If nothing goes as planned, he mentioned seeking “other markets.”.
- Canada’s Prime Minister will likely respond by imposing a 25% tariff on US imported goods worth C$30 billion, effective immediately. However, Trump is likely to retaliate with further tariffs if Canada does so.
→ But what thing to note is that Canada is already posing a threat to the stagflation scenario, which having a trade war would largely escalate even more. Even Douglas Porter, chief economist at BMO Capital Markets, also cited that “Canada faces a moderate recession if tariffs stay.” Hinting that Canada has not much choice for now. Either he chooses to move the manufacturing to the US or find another market, just like Mexico’s plan.
However, there is still hope for tariff changes on April 2nd with Canada and Mexico, as per US Commerce Secretary Lutnick.
- Ukraine’s President Zelenskiy is now willing to accept Trump’s conditions and ready to sign on rare minerals at any given time. The first stage would be “releasing prisoners and a truce in the sky (no flying zone).”
