US President Donald Trump carried out the assembly 25 percent Definitions on Mexico and Canada.

Definitions entered the largest commercial partners in the United States at 00:00 Easter (05:00 GMT), caused Markets All over the world to stumble.

Washington also imposed an additional 10 percent tax on Chinese imports, adding to 10 percent last month.

Mexico and Canada are the best commercial partners in the United States, as they represent more than 30 percent of the total traded goods. The value of trade between the three North American countries is more than $ 1.6 trillion.

Definitions will be applied to imports from Mexico and Canada about $ 918 billion.

How did we get here?

The customs duties on Mexico and Canada were among the first to obey after Trump’s re -election in November. He said that he imposes them to obtain Mexico and Canada to reduce migration and drug trafficking in the United States and more trade deficit between the United States and its largest commercial partners.

on February 3Mexican President Claudia Shinbom and Canadian Prime Minister Justin Trudeau agreed to enhance border security to prevent drug trafficking and the influx of migrants in the United States at the last minute deals to postpone the customs tariff that was appointed into force on February 4.

Last month, Trump also announced a 25 percent tariff Aluminum and steel imports Which will enter into force on March 12, which will be affected by Mexico and Canada as well.

What are the definitions and how do you work?

The tariff is a tax imposed by the government on imported goods and services paid by the companies that bring it to the country.

Local tariffs are designed to protect local industries, and increase consumer costs by making foreign products more expensive, which may reduce demand.

When the Trump administration first introduced the definitions in 2018, the goal was to strengthen American industries and punish foreign exporters. However, American companies and consumers bear the greatest burden of these definitions instead of foreign exporters.

The US tariff for the United States can increase 25 percent from Mexican and Canadian exports, costs, and lead to job losses, create economic uncertainty and employment. Revenge Definitions, an escalation of a commercial war.

What is the American trade deficit, the United States and Mexico?

The United States is in a trade deficit with Canada and Mexico, which means it buys more goods than those countries more than selling them.

In a statement from White House On the first of February, Trump stated that the customs tariff is a strong source of benefit from the United States, arguing that although trade represents 67 percent of the total local products in Canada (GDP) and 73 percent of Mexico, it represents only 24 percent of the US GDP. The American trade deficit in goods was the largest in the world with more than $ 1 trillion.

Mexico is the largest American commercial partner. In 2024, the United States imported 505.8 billion dollars of goods from Mexico and exported 334 billion dollars, which led to a trade deficit of $ 171.8 billion.

With the increase in trade over the years, the United States has been constantly conducted a deficit with Mexico, which has expanded in the past ten years.

The trade deficit between the two countries increased by 12.7 percent from 2023 to 2024.

Canada is the second largest American trading partner. In 2024, the United States imported $ 412.7 billion of goods from Canada and exported 349.4 billion dollars, which led to a trade deficit of $ 63.3 billion.

While the customs tariff may aim to reduce the trade deficit by reducing imports, the real impact of definitions is more complicated with the possibility of a retaliatory tariff and the high prices of consumer.

How will the customs tariff affect the USMCA agreement?

In 2018 during his first term, Trump announced USMCA as an alternative to the North American Free Trade Convention (Nava)Which was signed in 1992 during the administration of President George Herpeter Bush.

UsMCA, which entered into force in 2020, aims to update trade between the three countries by enhancing labor and environmental protection, increasing car manufacturing requirements, expanding digital trade rules and promoting intellectual property protection.

UsMCA is scheduled to be reviewed in 2026, but the potential threat to definitions may lead to these negotiations soon.

What are the Mexican products that will be affected by definitions?

Mexico is one of the largest foreign suppliers for the United States with cars, trucks and car parts that make up the largest share of exports. Machinery and electrical equipment tracking major exports, including industrial machines, computers and home appliances. Other major exports include petroleum products, agricultural products, medical devices, plastic and textiles.

According to Economic Summary Observatory (OEC), Mexico’s major exports to the United States in 2023 were:

• Vehicles and car parts (123 billion dollars): including cars, trucks and car components
• Electrical and electronics machines (86.1 billion dollars): including computers, telecommunications and consumer electronics
• Mechanisms, mechanical devices and parts (78.7 billion dollars): including industrial machinery and equipment
• Metal fuel and mineral oils ($ 25.2 billion): including gasoline and refined gasoline
• Visual devices, photographs, technology and medical (22.5 billion dollars): including tools and devices used in medical, surgical and scientific applications
• Furniture, bedding and lighting (13.3 billion dollars): including home furniture, offices, mattresses and lighting installations
• Drinks, spirits and vinegar (11.6 billion dollars): including beer and solid alcoholic drinks
• Fruits, nuts and fruit scales (9.38 billion dollars): including tomatoes, avocado and a variety of fruits and vegetables

What Canadian products will be affected by definitions?

Canada is the largest foreign oil resource to the United States with energy products, including crude oil and petroleum products, which represents about 30 percent of all Canadian exports to the United States. Cars, tractors and car parts are the second largest export, followed by machinery and mechanical devices. Other important exports include medicines, plastic and wood products.

According to OECThe main exports in Canada to the United States in 2023 were:

• Energy products (131 billion dollars): including crude oil and petroleum products
• Cars, tractors, trucks and auto parts ($ 56.7BN)
• Mechanical machines and devices (32.2 billion dollars): Covering machinery and industrial equipment
• Plastic materials and plastic articles ($ 14.2BN)
• Wood and charcoal products (11.5 billion dollars): Including plywood and seeing wood
• Machinery and electrical equipment (10.2 billion dollars): including devices and electrical components
• Minerals and precious stones (9.87 billion dollars): including gold, silver and diamonds