Immigration restrictions, 25% surcharge on imports to hurt US

WASHINGTON: President Trump has signed executive orders related to immigration, and the imposition of a 25 per cent surcharge on imports from China, Canada and Mexico. Some experts suggest that the implementation of these orders will also have negative effects on the US.

The restrictions on immigration and the deportation of illegal immigrants will lead to a labour shortage in the US. In sectors such as small businesses and other areas of trade and the economy where illegal immigrants are available to work for low wages, there will be a need to use legal and more expensive labour instead of cheap labour.

Consequently, the prices of US products and goods will increase. A component of the strong US economy is also low wages and labour. Critics also argue that the lack of cheap labour would affect the prices of food, fruits and agricultural products, as well as restaurant parking and other wholesale and retail trades, making them more expensive.

While stopping illegal immigration may help President Trump implement his political agenda, the average American will be affected by inflation and stagflation in the country. Similarly, by declaring Canada the 51st state of the US, and announcing the hoisting of the US flag in Greenland and the takeover of the Panama Canal, President Trump has fuelled several new global disputes around him, while those who referred to Canada as America’s backyard have also fallen silent.

There is a strong reaction in Canada to President Trump’s announcement. Canadians take pride in their identity, and the majority are striving to maintain their identity in relation to their proximity to the US.

Moreover, there is also a negative reaction from several countries regarding Trump’s announcement about Greenland. In the past, many Americans migrated during the Vietnam War and due to other controversial issues, and there is a risk that a similar reaction can occur as a result of Trump’s policies affecting neighbouring countries.

Additionally, regarding the 25 per cent surcharge on exports from China, Canada and Mexico to the US, an important aspect is that this surcharge will have to be paid by American importers of goods coming from these countries.

Therefore, the purchase and selling prices of these goods and the timber and items coming from these countries will increase in the US, which will have repercussions on the US economy.

Wood, construction materials, cars and other essential items are exported from Canada to the US. Thus, the surcharge on Mexico and Canada will create issues in countries located along the US border, affecting the US economy, geopolitics and environment.

Furthermore, the strategy of imposing immigration restrictions and surcharges will have long-term effects on US industry and economy. Additional exports will face legal battles and practical delays in implementing the executive orders mentioned by President Biden in these sectors. China’s response regarding the surcharge is yet to come.