Introduction of Import Tariffs and Cancellation of Electric Vehicle Subsidies in the U.S.: The First Steps of Donald Trump
On his inauguration day, President Donald Trump took several high-profile steps aimed at changing the economic policy of the United States. These decisions included the introduction of import tariffs on goods from Canada and Mexico, as well as the cancellation of subsidies for electric vehicles. Such measures have sparked widespread resonance both within the U.S. and beyond.
Import Tariffs and Their Consequences
In his first address to the press, Donald Trump announced the introduction of import tariffs starting February 1, 2025. The new tariffs affect goods from Canada and Mexico, which, according to the President, are linked to issues of illegal immigration and drug smuggling from these countries. These measures contradict the existing USMCA agreement, which provides for a free trade area between the U.S., Canada, and Mexico.
Experts believe that tariffs on dairy products from Canada and agricultural goods from Mexico could significantly impact the economies of both countries. HSE Professor Alexei Portansky described such actions as an unprecedented violation of trade agreements. Nonetheless, against the backdrop of a 25% tariff for Canada and Mexico, BRICS countries will face even stricter conditions—Trump has expressed his intent to impose tariffs of 100% on them.
It is curious that Donald Trump mistakenly included Spain among BRICS countries, which caused confusion among journalists and analysts. Despite this, the White House continues to prepare corresponding measures that may affect a wide range of products.
Rejection of the Green Agenda and Cancellation of Electric Vehicle Subsidies
Another significant decision was the announcement of the U.S. withdrawal from the Paris Climate Agreement. Trump confirmed that the U.S. would cease support for environmental initiatives, including funding for the production and sale of electric vehicles. These measures affect not only consumer subsidies but also programs aimed at developing charging infrastructure.
This decision could negatively impact the automotive industry, particularly for Tesla, led by Elon Musk. Experts note that the cancellation of subsidies will significantly complicate competition for electric vehicle manufacturers in the U.S.
Reactions from Canada and Possible Consequences
In response to Trump’s announcement of tariffs, Canadian Prime Minister Justin Trudeau has already promised a retaliatory response. According to him, Canada intends to apply measures on a "dollar for dollar" basis, which could lead to trade tensions between the two countries.
Mexico, for its part, has not yet provided an official response, but analysts believe that reciprocal actions from both countries are to be expected. It is anticipated that the conflict may affect the price of goods and increase costs for consumers in North America.
Conclusion
The initial economic steps taken by Donald Trump as President set a course for changes in both the foreign and domestic policies of the United States. The introduction of import tariffs and the rejection of subsidies for electric vehicles could lead to significant transformations in international trade and the domestic market. The reactions of neighboring countries and global partners to these measures will be a key factor in determining the further developments.
