- Web Desk
- 11 Minutes ago

Trump’s tariffs: Biden’s reaction, illegal migrants, and US economy
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- Web Desk
- Nov 29, 2024

WASHINGTON: United States President Joe Biden reacted to the president-elect Donald Trumps plans of implementing 25 per cent tariffs on both Mexico and Canada on Thursday.
On November 25, Trump pledged to enforce a 25 per cent tariff on imports from Mexico, in order to combat the influx of migrants from the US-Mexico border, as well as drugs, specifically fentanyl. Trump stated that “as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 per cent tariff on all products coming into the United States, and its ridiculous Open Borders.”
JOE BIDEN AND CLAUDIA SHEINBAUM
The president stated that he hopes Trump rethinks his tariff plans, as he claimed it was a “counterproductive thing to do,” adding that “the last thing we need to do is begin to screw up those relationships.”
Relationships are definitely at risk, with Mexico’s president Claudia Sheinbaum stating on November 27 that Mexico would retaliate if Trump went through with his proposed plans. However, Sheinbaum was clear that this was an outcome she would like to avoid. “One tariff will follow another in response and so on, until we put our common businesses at risk,” she stated.
Since then, Trump and Sheinbaum shared a phone call, which the Mexican president claimed was “excellent” despite the fact that the two came out of it with conflicting takeaways.
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“Mexico will stop people from going to our Southern Border, effective immediately. This will go a long way toward stopping the illegal invasion of the USA. Thank you!!!” Wrote Trump on Truth Social following the call. It was great news for Trump, as stopping illegal migrants from crossing the border was one of the reasons Trump cited for proposing the tariffs. However, Sheinbaum didn’t have the same takeaway as Trump, clarifying that she never stated that people would be stopped from going to the border.
“We reiterate that Mexico’s position is not to close borders but to maintain bridges between governments and people,” Sheinbaum wrote on X, formerly known as Twitter. What Trump took as a change of policy, was simply Sheinbaum apprising him about Mexico’s efforts in stopping caravans from arriving at the northern border, by “taking care of” (providing aid to) the migrants. Trump often points to migrant caravans as evidence of the ‘illegal invasion’.
She further clarified her stance by stating that “Mexico’s position is not to close borders but to build bridges between governments and between peoples.”
THE TARIFFS
There are two possible effects of the new tariffs. Either the US companies importing products from Mexico and Canada absorb the cost and bear the burden, or it is passed on to the consumer. According to economic experts, it will be the latter who suffer as costs of electronics, produce, clothing, and gasoline are raised, among other things. Even American companies use imports such as steel and seats used in cars, which will end up raising prices of domestically made products as well.
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The supposed outcome of these tariffs is to create more domestic jobs, but the US Bureau of Labor Statistics showcases that despite Trump’s tariffs on steel in 2018, employment in the steel sector was stagnant. Mexico’s government also claimed that over 400,000 US jobs could be lost, with the economy minister, Marcelo Ebrard, pointing to car manufactures such as Ford and General Motors.
“Our estimate is that the average price of these vehicles will increase by $3,000,” Ebrard said. While Trump believes that tariffs will boost domestic manufacturing jobs, he is not talking into account the higher costs for raw materials.
The effect on the economy will be amplified by another move Trump is planning for his first day in office, mass deportations. As one in eight workers in the fields of construction and agriculture are immigrants, along with one in fourteen workers in the hospitality industry, the US GDP is estimated to fall drastically. The American Immigration Council estimated that it would fall by between 4.2 and 6.8 per cent, while Bloomberg Economics found that it would drop by 7.9 per cent. Their estimates reflect the effects of deporting migrants who make up large portions of the labour force in health care, agriculture, and the service industry.
With tariffs and mass deportations looming, it seems that US-born workers will face higher prices while their jobs may be put at risk. Thus, the immediate outcomes of Trump’s presidency may clash with the hopes of the voters who put him in office, as the economy was widely seen to be their prime concern.
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