Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Yemeni Armed Forces: The blockade on the Port of Haifa comes following the successful imposition of the siege on the Port of Umm al-Rashrash, which has since ceased operations
Yemeni Armed Forces: The Port of Haifa is now officially part of our target bank
Yemeni Armed Forces calls on companies with ships currently in the Port of Haifa or en route to it to take into account the contents of the statement and any forthcoming announcements
Yemeni Armed Forces: The imposition of a blockade on the Port of Haifa comes in response to the enemy’s escalation of its brutal aggression against Gaza and the continued siege and starvation
Yemeni Armed Forces: Our decisions and operations against the occupying entity will not cease until the aggression on Gaza ends and the blockade on it is lifted
Yemeni Armed Forces: We have decided to begin enforcing a naval blockade on the Port of Haifa, which is now among our list of designated targets
The Israeli occupation has released the child Mohammad, the son of martyr Ahmad Sarhan, whom it abducted earlier today from Khan Younis in the southern Gaza Strip, but his mother remains in detention
UK, France, and Canada in a joint statement: The Israeli Government’s denial of essential humanitarian assistance to the civilian population is unacceptable and risks breaching International Humanitarian Law
Leaders of UK, France, and Canada warn that their countries would take action if "Israel" does not stop a renewed military offensive in Gaza and lift aid restrictions
Putin says Trump in conversation expressed his position on cessation of hostilities in Ukraine

Trump's tariffs mark a shift toward protectionism: WSJ

  • By Al Mayadeen English
  • Source: The Wall Street Journal
  • 4 Mar 2025 14:40
4 Min Read

Manufacturers and markets are facing disruption from Trump's tariffs, fueling uncertainty about their future.

Listen
  • x
  • Container cargo ships line a dock at Port Newark in Newark, N.J., on April 3, 2002. (AP)
    Container cargo ships line a dock at Port Newark in Newark, N.J., on April 3, 2002. (AP)

A Wall Street Journal report published on Tuesday discussed Trump's new tariffs on the US' neighbors, saying that they have ended decades of free trade between the US, Mexico and Canada, disrupting various industries.

The 25% tariffs will apply to most imports, with energy products taxed at 10%. Canada has announced plans for retaliatory tariffs. If the tariffs stay in place, they could dramatically change US relations with its major trading partners, reversing the long-standing trend of expanding free trade.

The report mentioned that the three countries had been operating under a revised trade agreement negotiated by Trump. Additionally, Trump signed an executive order imposing a 10% tariff on China, effective the same day.

Moreover, the Trump administration has cited the flow of drugs and undocumented immigrants across the US border as justification for tariffs, and has also said that tariffs would lead to more manufacturing in the US.

On Monday, he said, ​​"So they’re going to have a tariff, and what they have to do is build their car plants, frankly, and other things, in the United States, in which case you have no tariffs." 

What impact do tariffs have? 

The WSJ reports that uncertainty is already affecting the economy, hindering business orders and complicating company planning. This is compounded by other issues, such as widespread federal worker layoffs, reductions in government-funded programs, and immigration restrictions.

On Monday, US stocks dropped significantly after Trump confirmed the tariffs, with the Nasdaq Composite, which is tech-heavy, leading the decline with a 2.6% drop.

Related News

South Africa to press Trump on trade ties during Washington visit

Trump signals new US tariffs, warns trading partners of imminent hikes

Manufacturers are feeling the pinch. "Tariff threats and uncertainty are extremely disruptive," one respondent to the Dallas Fed’s February manufacturing survey, released last week, noted.

The report highlighted that Goldman Sachs observed how Monday's February manufacturing report from the Institute for Supply Management mentioned tariffs 20 times, a significant increase from just four mentions in January.

Moreover, the Institute's Purchasing Managers' Index declined slightly in February, indicating a slowdown in manufacturing expansion.

What do companies have to say? 

According to the piece, during Ford Motor’s earnings call last month, Chief Executive Jim Farley cautioned that prolonged 25% tariffs on Canada and Mexico "would have a huge impact on our industry, with billions of dollars of industry profits wiped out."

Preparing for the tariffs is also difficult for some small businesses. The WSJ report noted that the Penny Ice Creamery in Santa Cruz, California, for example, lacks the extra space to stockpile specialty sprinkles imported from Canada. Additionally, budgets remain tight following the slower winter months, co-owner Zachary Davis said.

That being said, some companies plan to absorb the costs, at least for the time being.

For instance, Chipotle Mexican Grill stated that tariffs on Mexican imports like avocados could impact its profit margins this year. On Monday, the company said it plans to absorb potential cost increases instead of raising prices, given the uncertainty over how long the tariffs will remain in effect.

What happens next? 

On the other hand, economists warn that tariffs could drive up prices while slowing the economy, heightening the risk of "stagflation," a combination of weak growth and high inflation.

If tariffs remain in effect, they might push up inflation in March, April, and May as firms raise prices to make up for higher import costs, said Michael Feroli, chief US economist at JPMorgan Chase. The tariffs also might hurt US exporters if Canada’s and Mexico’s economies take a hit and if they retaliate with tariffs of their own.

"If those countries go into recession, that alone is a reason to expect US exports to those countries to slow," he said.

  • US tariffs
  • United States
  • Canada
  • Mexico
  • Donald Trump

Most Read

Gaza and the logic of necropolitics: Sovereignty measured by killing

Gaza and the logic of necropolitics: Sovereignty measured by killing

  • Politics
  • 15 May 2025
Two F-35 jets arrive at it's new operational base Wednesday, Sept. 2, 2015, at Hill Air Force Base, in northern Utah. (AP)

F-35 near-misses over Yemen signal new risks for 'Israel': Forbes

  • Politics
  • 14 May 2025
Abu Obaida

Abu Obeida posts shortly after Israeli reports about his assassination

  • Palestine
  • 15 May 2025
YAF say struck 'Israel's' Ben-Gurion Airport with missiles, drones

YAF say struck 'Israel's' Ben Gurion Airport with missiles, drones

  • MENA
  • 18 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
Britain's Prime Minister Keir Starmer, Deputy Prime Minister Angela Rayner and Foreign secretary David Lammy leave after attending the annual Commonwealth Day Service at Westminster Abbey in London, Monday, March 10, 2025. (AP)
Politics

Labour Minister breaks ranks, blasts government over Gaza

China’s advanced AI may surpass US Efforts: Report
Asia

China’s advanced AI may surpass US efforts: Report

A Boeing 777X is brought on the runway ahead of a display flight, at the Farnborough Air Show fair in Farnborough, England, Tuesday, July 19, 2022 (AP)
US & Canada

Boeing stock rises after Trump secures major Gulf deals

MEPs urge the Commission to act so that all EU citizens can travel to the US without visas©AP Images/European Union-EP
US & Canada

Americans race for EU residency as immigration doors begin to close

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS