NAFTA is this;
It lead to a lot of companies outsourcing their jobs from the US to Mexico and Canada to partake in cheaper labor, resulting in devastation to many local US economies such as the Auto Industry in Michigan. Among other problems.
Here’s a quick Youtube video about it;
Fast forward;
Under Lord Trump;
During his first term, NAFTA (North American Free Trade Agreement) was replaced by the United States-Mexico-Canada Agreement (USMCA) on July 1, 2020.
This deal shifted the trade agreement to favor localization of parts in the US for auto manufacturing, and increased labor laws in Mexico, allowed more dairy imports from Canada, among other things. (You can read about this, but it’s likely not going to matter anymore seeing as these new tariffs are basically tradewars)
Then when Trump came back to the White house 2025, he raised Tariffs.
Effectively wombo-combo one-two-three-punch the Free Trade notion between the countries.
Raising about a 25% trade tariff on imports from Canada and Mexico;
In Which Canada and Mexico both raised tariffs against the US about the same amount of 25%.
All the while the numbers from 2023 explain SOME of the exports affected;
Here are some random infographics to make it feel like you’re learning.
It is to note that this will effect what goods are being imported too. It seems there are talks about trade restrictions on specific goods, like cars, from Canada, similar to the Huawei deal.
China?
All the while, currently China has about 10% or so Tariffs. It seems like the US is cleaning up in house (North America) first before stabilizing to waging a trade war across the waters.
It is to note that there was an impact to the ‘De Minimalis Exemption’, meaning that imports less than <$800 used to be free (or less scrutinized) from tariffs and inspections, meaning that the Drop shippers of old and large Second Hand Retailers like Amazon (or Target or Walmart or whatever) peddling Chinesium products will have price hikes too. So Chinese based manufacturers are getting a jab too.
Coupled with the deportation of illegal immigrants, it’s ironically affecting the production and handling at these shipping warehouses in the US. Ha. What a coincidence.
As such,
You’ll see a lot of people underneath, companies and corporations work around these new rules. They are looking to source their products in house or move abroad to create in-house operations. Some Canadian Companies are looking to move to the US to expand local US operations.
If the Tariffs and Trade war succeed, Lord Trump has floated the idea of removing the IRS and income tax.
Bold move cotton, let’s see how it plays out.
As a side note
US and Mexico and Canada were allied trade partners, and now we’re infighting due to -reasons-. I mean, I get it from the US perspective, and I get the retaliation from Mexico and Canada’s perspective.
It certainly opens up more chance for foreign actors to support Canada or Mexico. I mean, if you’ve been paying attention to Chinese imperialistic economic expansion influences in domestic markets in Canada and Mexico, then it’s likely that they’ll strengthen their already strong ties in this bout.
In Closing
Yea, Economies at scale are duke-ing it out while the average corporation, company, and wagie are caught up in the collateral damage as they have to navigate the restructuring of the world orders.
This is a shit post, meant to paint a loose superficial narrative at what’s going on and what will come of it.
If you’re really interested, I would focus on the outsourcing of jobs and production and labor, then tie that with class consciousness on a global scale, to see a bigger picture.
Eh, it is what it is.
*Not Valid Financial, Legal, Life, or Any Advice