Like, oh my gosh, the United States is totally shaking things up with these, like, major tariffs on Canada, Mexico, and China. And it’s causing major drama in the global economy.
So, trade wars aren’t exactly a new thing. Back in the day, the Smoot-Hawley Tariff Act of 1930 totally made things worse during the Great Depression by making international trade, like, way harder. And then, in his first term, President Trump was all about this trade war with China, slapping on a bunch of tariffs to deal with trade issues and, like, intellectual property stuff. China was so not having it and threw tariffs right back, making things super stressful for farmers and tech people.
And now, in round two, Trump is back with a 25% tariff on Canadian and Mexican goods, and, like, a 10% one on Chinese stuff. But wait, Canada’s energy products are, like, getting a smaller 10% tariff, so yay for them? But obvi, the other countries are, like, not chill about it. Canada and Mexico are fighting back with their own tariffs, and China is totally running to the World Trade Organization to complain. And if that wasn’t enough, people are super worried that this is gonna make gas and food, like, way more expensive.
Experts are freaking out. Nobel laureate Joseph Stiglitz is straight-up saying that this will make inflation worse, slow the economy, and just be, like, really bad news for people in the U.S.
Marcus Noland from the Peterson Institute for International Economics is, like, so worried about how these tariffs will mess up supply chains, making it super hard for businesses to plan anything. He’s all, “Yeah, this is bad news for investment and job creation.”
And, like, it’s not just the U.S. feeling it. Alan Deardorff from the University of Michigan is like, “People will see changes in consumer prices, as these tariffs could affect everyday life, including employment patterns and the cost of goods.”
And the auto industry? OMG, disaster incoming. Ontario Premier Doug Ford is basically screaming that a 25% tariff is gonna wreck jobs in both Canada and the U.S., which is, like, terrifying since Ontario’s car industry has half a million jobs. Canada is super stressed because, like, 75% of its exports go to the U.S. and that’s a quarter of Canada’s entire economy.
And, like, Mexico isn’t doing any better. Since 27.4% of its GDP is tied to exports to the U.S., experts are saying this could straight-up cause a recession.
Meanwhile, China’s situation is a little different, but still, these tariffs could make things super expensive and mess up jobs in export-heavy industries.
Oh, and global supply chains? Yeah, this could totally make everything pricier worldwide.
So the world is basically holding its breath. Free trade fans are trying to remind everyone why it’s good, while protectionists are, like, doubling down. If countries start negotiating or, like, if the tariffs stay forever, it could totally change everything. Experts are, like, “Yeah, this is a big deal,” and people everywhere are just waiting to see how it all plays out. Like, OMG, buckle up, everyone!
XOXO,
Valley Girl News
