President Donald Trump delivered on his threat to hit Canada and Mexico with sweeping import levies and doubled an existing charge on China, Bloomberg reported. But the tariffs will impact jobs here in the US, according to some analyses.
The new US tariffs encompass 25% duties on most Canadian and Mexican imports and raise the charge on China to 20%, according to Bloomberg. They apply to roughly $1.5 trillion in annual imports.
Canada hit back with phased levies on $107 billion worth of US goods, while China imposed tariffs of as high as 15%, mainly on American agricultural shipments, Bloomberg reported. Mexican President Claudia Sheinbaum said March 4 that her government would announce tariffs and other measures on March 9 in response to Trump’s new charges. She said she would likely speak with Trump on March 6.
Tariffs often raise the costs of imported goods, which may hurt business growth at companies such as automakers, according to an analysis published by SIA. Staffing firms that supply such businesses may see demand decline. On the flip side, company cost-cutting may also lead to increased contingent hiring in regions with lower labor costs or in areas that are less impacted by tariffs.
In a statement on Monday, Monster Economist Giacomo Santangelo noted the US labor market continues to exhibit robust growth overall in the healthcare and retail sectors. However, tariffs on industries such as steel and automotive can be a factor in reducing job opportunities. New graduates and those entering the job market face a challenging landscape, particularly in government or aide roles.
Separately, an analysis by Adecco found that tariffs in the US could result in an economic slowdown for Canada in the short term as well as unemployment and business closures. In the long term, Canada may shift its trade relationships to other countries, and global businesses could restructure their supply chains to reduce reliance on the US market. Canadian firms may also innovate and invest in technology to remain competitive.
Meanwhile, more tariffs are coming, including in April with reciprocal tariffs on all US trading partners that have their own levies or other barriers on American products as well as sectoral taxes of 25% on cars, semiconductors and pharmaceuticals, Bloomberg reported. Those tariffs are also poised to be cumulative — in addition to any across-the-board tariff on a particular nation.
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