What is a Customs? Why Trump Delayed them for Mexico and what it means for the United States

Washington And President Donald Trump has said he will delay customs duty on Mexican imports for at least a month, as the country south of the United States has said they will immediately strengthen the border with 10,000 members of the National Guard.

Last week, Trump announced that he would impose 25% duty on goods imported from Canada and Mexico and a 10% duty on all imports from China.

The tariffs were framed as a response to illegal immigration and fentanyl-related concerns, but the Trump administration has said it will also apply to the oil-moving critics that gas prices are popping up over $ 0.20 per year. Gallon, reports FOX BUSINESS.

Related: How will tariff rates affect grocery prices, gas prices, stock market and more

What is a Customs?

The basics:

Tariffs are taxes imposed on imported goods paid by the importer. The purpose of a duty is to raise the price of imported goods and services to discourage consumption and get people to buy more local products to stimulate the nation’s economy.

The idea is to encourage more local production so that imported goods can be replaced by domestic products that raise the revenue for the government.

According to A report Highlighted in the Journal of Economic Perspectives, it is common for US presidents to introduce protectionist measures – as heavy tariffs – early in their terms.

In 2018, Trump imposed on $ 283 billion dollars of US imports in 2018 with rates between 10% and 50%. In response, several countries, including China, Russia, Canada, Mexico and the EU, filed all cases against the United States to the World Trade Organization. Many of these countries also reciprocated their own customs.

Concerns of trade war

What is the next one:

On Sunday, Canada and Mexico ordered Remarks Tariffs On US items in response to sweeping tariffs imposed by Trump and Businesses and Consumers In both countries, questions were questioned how the new trade war could affect them.

Canada initially ordered 25% duty rates on US imports starting on Tuesday, including beverages, cosmetics and paper products worth $ 30 billion ($ 20 billion). Another list of goods should soon be released, including passenger cars, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products, aviation products and more. These items were estimated to be worth $ 125 billion ($ 85 billion).

Trump and Mexico President Claudia Sheinbaum Pardo then announced on Monday that there would be a month long break on customs used for Mexican imports in exchange for border enforcement, with 10,000 members of Mexico’s national guard who were deployed to strengthen the efforts of the nation’s northern border.

“Mexico will immediately reinforce the northern border with 10,000 members of the National Guard to stop drug trafficking from Mexico to the United States, especially Fentanyl,” Sheinbaum posted on x. “The United States undertakes to work to stop trading in high -driven weapons to Mexico.”

Canada is the largest export market for 36 states and Mexico is the largest trading partner in the US

Ministry of Commerce in China said that would submit a LawsuiT. with the World Trade Organization for the “wrongful practice in the United States” and take measures to protect its rights and interests.

Concerns over the tariffs affected US shares on Monday as the financial markets around the world fell on fear of a potential trade war.

The S&P 500 fell 1.4% in early trade and reflects losses in stock markets across Asia and Europe. Dow Jones Industrial Average fell 435 points, or 1%, at. 09:35 Eastern time, while the Nasdaq composite fell by 1.8%.

The market emissions affected a large number of assets, from Bitcoin to the Mexican Peso, not only US companies that are expected to be most severely affected by Trump’s customs. At Wall Street, Big Tech and other companies experienced vulnerable to higher interest rates some of the sharpest losses.

Trump has promised several import duties to come.

How will customs rates affect the grocery prices?

Big Picture View:

There is growing concern that Trump’s tariffs will lead to higher prices for groceries, electronics and various other household expenses. This could put upward pressure on US inflation, which has gradually been slower since its highest three summers ago.

Jason Moser from Motley Fool says the risk is in the longer Trump’s tariffs continues. “In fact, Mexico delivers about half of the US fresh products import annually. More than 80% of our avocado,” he said. “You might want to fill up some tequila. Certainly consumer electronics, bigger ticket items like cars. I think it’s one to think about how connected this supply chain is between Mexico, Canada and the USA” Moser told Fox 5 on Monday. “I think the risk is, the longer this is going on, we start to see these price increases, maybe we see Supply Chain interruption,” he added.

Associated Press said the United States bought more than $ 45 billion in agricultural products from Mexico in 2023 – including 63% of imported vegetables and 47% of fruits and nuts. Agricultural imports from Canada that year came to $ 40 billion.

American farmers are nervous that Canada and Mexico will be reciprocated by placing customs on American products such as soybeans and maize.

Newsdonald J. Trumppolitics