Trump’s executive orders risk economic backlash, experts warn

WASHINGTON: Following President Trump’s signing of a series of executive orders concerning immigration and introducing a 25 percent surcharge on imports from China, Canada, and Mexico, some experts warn that these measures could have detrimental effects on the US economy, adding that the crackdown on immigration and the deportation of undocumented migrants might result in labour shortages in the United States.

Many sectors, particularly small businesses and various trades that rely on low-wage labour, will need to turn to more expensive legal labour as a substitute for affordable workforce, previously provided by undocumented immigrants.

This shift is expected to drive up the prices of US-made goods and products. A key element supporting the healthy US economy is the availability of low-wage labour and critics contend that the loss of this inexpensive labour pool could lead to higher costs for food, agricultural products, restaurants, and various wholesale and retail operations.

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While curbing illegal immigration may assist President Trump in advancing his political agenda, it risks leading to inflation and stagflation that will burden the average American.

Furthermore, Trump’s declaration of Canada as the 51st state of the US, along with his provocative statements about raising the US flag in Greenland and asserting control over the Panama Canal, have sparked new international disputes. Those who previously referred to Canada as America’s “backyard” have now become notably quiet.

This announcement has provoked a strong backlash in Canada, where citizens take pride in their national identity and are keen on preserving it in the face of US proximity.

Moreover, Trump’s remarks regarding Greenland have drawn negative responses from various nations. Historically, significant American migration during the Vietnam War and other contentious events raises concerns that similar reactions could emerge due to Trump’s current policies impacting neighbouring countries.

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Also, with the introduction of the 25 percent surcharge on exports from China, Canada, and Mexico to the US, it is important to note that American importers will bear this cost. Consequently, the purchase prices for goods imported from these nations, including timber and other essential commodities, will rise in the US, leading to economic repercussions.

Canada exports wood, construction materials, vehicles, and other crucial items to the US, meaning that the surcharges on Mexico and Canada could create challenges for border-adjacent economies and impact US geopolitics and the environment.

Lastly, the combination of immigration restrictions and surcharges is likely to yield long-term implications for the US industry and economy. Exports could face legal challenges and practical delays in executing the executive orders previously mentioned by President Biden within these areas.