Trump's Proposed Tariffs to Cause Supply Disruptions: White House

Lael Brainard, Chief Economic Advisor, US President Joe Biden, emphasized that Donald Trump’s proposed tariffs would significantly increase the cost of producing goods in the United States. Brainard warned that such a policy could trigger "unpredictable" disruptions in supply chains. "American manufacturers depend heavily on imported components for essential aspects of their daily production processes. This could force a profound restructuring of cost frameworks, leading to sharp price increases for consumers."

Joe Biden has previously criticized Trump’s economic policies, describing them as disastrous. He specifically condemned the imposition of large-scale import tariffs, arguing that American consumers ultimately bear the financial burden of such measures. "I hope the president-elect abandons Project 2025. I believe it would be an economic disaster for the United States and the region," Biden stated.

Mexico, United States Tariffs 

Trump’s proposed tariffs include a universal rate of up to 20% on imports, a targeted 60% tariff on Chinese goods, and a potential 25% tariff on Mexican goods tied to immigration and drug concerns. Minister of Economy Marcelo Ebrard stated that if Donald Trump were to increase tariffs across various sectors, Mexico would respond proportionally.

Subsequently, Mexican President Claudia Sheinbaum enacted a decree imposing a 35% tariff on manufactured goods and a 15% tariff on textile imports. She has stated that the initiative is not a response to China or United States, but rather seeks to address regulatory inconsistencies, establish fair competition for domestic businesses, and protect approximately 400,000 jobs.