In a move that raised trade tensions, former U.S. President Donald Trump announced the imposition of tariffs on imports from China, Mexico, and Canada, which are among the largest trading partners of the United States. These tariffs were part of the "America First" policy that focused on reducing the trade deficit and encouraging domestic manufacturing.

Impact on Mexico and Canada:

According to a report from "Business Insider," the United States represents a key market for these two countries.

• Mexico: Exports 83% of its exports to the United States.

• Canada: Exports 75% of its exports to the American market.

The tariffs and their objectives:

• The tariffs were imposed to reduce the trade gap with these countries.

• They also aimed to protect jobs in U.S. industrial sectors, especially steel and aluminum.

These policies sparked significant disputes, as China, Mexico, and Canada responded with similar measures, leading to a trade war that affected the global economy. If you would like to know more about the detailed effects of these tariffs on global trade, I can search further or provide links to additional sources.

The elected president of the United States, Donald Trump, announced tariffs on imports from China, Mexico, and Canada, leading to widespread repercussions on financial markets and global trade.

Export data:

• Mexico: Its exports to the United States amounted to approximately $379 billion in the first nine months of the current year.

• Canada: Recorded its exports to the United States at $309 billion during the same period.

These figures represent the importance of the United States as a key market for both countries, as their exports heavily rely on the U.S. economy.

Effects of the tariffs:

1. Energy:

• Canada is the largest supplier of crude oil to the United States, having exported energy products worth $128 billion last year, accounting for about one-third of its total exports.

• The tariffs are expected to increase the cost of energy products, which will raise inflation and reduce consumers' purchasing power.

2. Affected sectors:

• Autos: An industry closely linked to trade agreements, which may affect global supply chains.

• Technology and agriculture: Will suffer from fluctuations due to increased tariff rates.

3. Market reactions:

• The U.S. dollar rose against both the Canadian dollar and the Mexican peso.

• Stock markets in Europe and Asia experienced a decline due to concerns over trade escalation.

Officials' statements:

• Nigel Green, CEO of "deVere Group," noted the need for investors to prepare for immediate fluctuations in sectors linked to global trade.

• Wilbur Ross, former Secretary of Commerce, stated that imposing tariffs on Canadian energy imports is unlikely, given its importance in supplying the U.S. market with affordable energy.

General analysis:

The new tariffs represent a challenge for economies that rely on the U.S. market. At the same time, they negatively impact American consumers by raising prices and disrupting supply chains.

The impact of tariffs on the automotive and industrial products sectors:

Automotive sector:

• Mexico:

• Mexico is a global hub in the automotive industry, employing more than one million people in this sector.

• In October 2024, approximately 255,910 vehicles were exported to the United States, an increase of 7.5% from the previous year, representing about 75% of total Mexican vehicle exports.

• In 2022, the value of Mexican vehicle exports to the United States reached $112 billion, supported by the presence of companies like Toyota, Nissan, and Honda, along with Tesla's plan to build a new factory.

• The tariffs threaten new projects like the Tesla factory and raise concerns about expansions by Chinese companies like BYD that plan to establish a factory in Mexico.

• Canada:

• The value of Canadian vehicle exports to the United States was $58 billion in 2022.

• The sector heavily relies on free trade agreements to ensure price competitiveness and smooth exporting.

Industrial products:

• Machinery and equipment:

• In 2023, Canada exported $34 billion worth of machinery, nuclear reactors, and boilers to the United States.

• Mexico, for its part, shipped $91 billion worth of heavy equipment, reactors, and machinery in 2022.

• Other goods:

• Canada exports basic goods such as plastics, electronics, and food, worth tens of billions annually.

• Mexico contributes technology products, furniture, food, and beverages, enhancing its trade with the United States.

Consequences of the tariffs:

• The tariffs are expected to lead to increased production costs in the United States, especially in sectors that rely on imported inputs like automobiles and energy.

• The tariffs may lead to increased inflation and higher prices for American consumers.

• Manufacturers, such as Tesla and BYD, face tough decisions regarding their expansion plans in Mexico or changing their strategies due to Trump's trade policies.