WASHINGTON: President Trump’s recent executive orders on immigration restrictions and a 25% surcharge on imports from China, Canada, and Mexico have drawn sharp criticism from economic and trade experts, who warn of significant repercussions for the U.S. economy.
The immigration policy, which targets illegal immigrants and aims to deport them, is likely to create labor shortages. Many industries that rely on undocumented workers for low-cost labor — including agriculture, small businesses, and various service sectors — will be forced to hire legal workers at higher wages, potentially driving up the prices of goods and services.
Low labor costs have been a key component of U.S. economic strength. Critics argue that the shift to more expensive labor will lead to inflation in food prices, retail goods, and services like restaurant operations and parking. They warn that while these measures may serve political objectives, the average American will face higher living costs and economic stagnation.
Trump’s broader trade policies, including a provocative declaration claiming Canada as the 51st state and plans to raise the U.S. flag in Greenland, have stirred global tensions. Canada, proud of its independent identity, reacted strongly to Trump’s statement, with many citizens pushing back against any notion of integration with the U.S.
The 25% import surcharge will also have a cascading impact. Since U.S. importers bear the cost of tariffs, the price of goods from China, Canada, and Mexico — including lumber, construction materials, automobiles, and other essentials — will rise. This could slow down the construction industry and increase housing costs, among other economic challenges.
Mexico and Canada are key trade partners, and heightened tariffs will not only strain bilateral relations but also disrupt supply chains in border regions, affecting trade, employment, and environmental policies.
Experts caution that Trump’s aggressive trade and immigration strategies risk entangling the U.S. in legal disputes and delays, further complicating trade agreements and economic stability. China’s response to the import surcharge remains pending, potentially escalating trade tensions further.
Economic analysts highlight the need for careful balance between enforcing border policies and maintaining economic growth, warning that a hardline approach could have long-lasting negative impacts on both domestic industries and international relations.