{"id":14953,"date":"2025-02-02T17:31:57","date_gmt":"2025-02-02T17:31:57","guid":{"rendered":"https:\/\/financialrush.com\/?p=14953"},"modified":"2025-02-02T17:31:57","modified_gmt":"2025-02-02T17:31:57","slug":"trump-faces-tariff-backlash-from-business-as-trade-war-sparks-inflation-fear","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=14953","title":{"rendered":"Trump faces tariff backlash from business as trade war sparks inflation fear"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description\">Your guide to what the 2024 US election means for Washington and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=3cc26cc1-57e7-44d0-8c09-6c5dec30cc75&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Donald Trump faced a backlash from business groups and some in his own Republican party after kicking off a trade war by imposing steep tariffs on the US\u2019s three largest trading partners.<\/p>\n<p>Trade associations representing consumer goods, oil, groceries and automakers lined up to warn that Trump\u2019s new tariffs \u2014 which included 10 per cent tariffs on imports from China, 25 per cent on all imports from Mexico and Canada, excluding Canadian energy \u2014 would push up prices for ordinary Americans and cause chaos in supply chains.\u00a0<\/p>\n<p>\u201cThe president is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs\u2009.\u2009.\u2009.\u2009won\u2019t solve these problems, and will only raise prices for American families,\u201d said John Murphy, senior vice-president of the US Chamber of Commerce, the US\u2019s largest business group.\u00a0<\/p>\n<p>Consumer product groups warned that Americans would see more expensive groceries, while automakers warned the tariffs would raise the cost of building vehicles in the US.<\/p>\n<p>\u201cTariffs on all imported goods from Mexico and Canada \u2014 especially on ingredients and inputs that aren\u2019t available in the US \u2014 could lead to higher consumer prices and retaliation against US exporters,\u201d said Tom Madrecki, vice-president of supply chain resiliency at the Consumer Brands Association.<\/p>\n<p>Three separate trade groups representing Mexican tequila, US bourbon and Canadian whisky warned that a North American trade war would exacerbate a slowdown in the sale of spirits and liquors. <\/p>\n<p>The criticisms come a day after <a href=\"https:\/\/www.ft.com\/content\/b9101226-edc1-4cde-93ec-186bc95021d7\" data-trackable=\"link\">Trump imposed steep tariff<\/a>s on Canada, Mexico and China, catapulting economic nationalism to the top of his agenda while railing against the US trade deficit with its trading partners.<\/p>\n<p>In response, Canadian Prime Minister Justin Trudeau announced 25 per cent tariffs on C$155bn (US$107bn) worth of goods, including US alcohol, clothing, household appliances and lumber.<\/p>\n<p>Mexico\u2019s President Claudia Sheinbaum was expected to soon announce tariffs as well after warning of retaliatory measures.<\/p>\n<p>Trump stepped up his attacks on US trading partners on Sunday, taking to social media to rail against the US trade deficit and repeat his demand that Canada become \u201ca 51st state\u201d.\u00a0<\/p>\n<p>\u201cWe pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why?\u201d He posted on Truth Social.<\/p>\n<p>\u201cThere is no reason. We don\u2019t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use. Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State.<\/p>\n<p>The aggressive new trade measures were criticised by lawmakers including Tim Scott, the Republican Senator for South Carolina, who branded them \u201cnothing more than a tax on South Carolinians\u201d.\u00a0<\/p>\n<p>\u201cI understand and appreciate the willingness to take on the dubious actions of countries like China who constantly break and ignore the rules, but treating our close, long-term allies the same way is unproductive at best,\u201d Scott wrote on X.\u00a0<\/p>\n<p>Congressional Democrats slammed Trump\u2019s move.<\/p>\n<p>\u201cThese reckless tariffs take a sledgehammer where a scalpel is necessary, and the American people will pay the price,\u201d said Richard Neal, the top Democrat on the House of Representatives committee overseeing trade policy.\u00a0<\/p>\n<p>\u201cTargeted, thoughtful measures aimed at specific industries can protect American interests and workers, and demonstrate thorough policymaking,\u201d Neal added. \u201cThat\u2019s not what the President is doing.\u201d<\/p>\n<p>The Peterson Institute estimated last month that Trump\u2019s threatened sanctions would cause economic damage for all the countries involved, including the US.\u00a0<\/p>\n<p>A 25 per cent tax on imports from Canada and Mexico would result in a hit of around $200bn to the US economy for the duration of Trump\u2019s term, it estimated. The economic hit to the US from higher tariffs on Chinese imports would be $55bn. US inflation would also rise.<\/p>\n<p>Goldman Sachs research analysts wrote on Sunday that \u201cit is more likely that the tariffs will be temporary\u201d due to their potential economic impact and the White House setting general conditions for their removal.\u00a0<\/p>\n<p>The investment bank had previously estimated that a long-term 25 per cent tariff on imports from Canada and Mexico would raise core personal consumption expenditure prices by 0.7 per cent.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/3cc26cc1-57e7-44d0-8c09-6c5dec30cc75\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what the 2024 US election means for&hellip;\n","protected":false},"author":6,"featured_media":14954,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-14953","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/14953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14953"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/14953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/14954"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}