The United States’ president-elect Donald Trump has announced plans to impose significant tariffs on Canada, Mexico, and China, potentially disrupting global trade relations with America’s largest trading partners.
Trump declared on social media platform Truth Social that he would implement a 25 percent tariff on all Canadian and Mexican imports upon taking office on January 20. The move, he stated, would continue until both nations address concerns over fentanyl trafficking and migration across borders.
The president-elect separately announced an additional 10 percent tariff on Chinese imports, though the exact implementation remains unclear given his previous pledges to revoke China’s most-favoured-nation trading status and impose tariffs exceeding 60 percent.
These proposed measures could significantly impact North American trade dynamics, particularly given that the U.S. market accounts for more than 83 percent of Mexican exports and 75 percent of Canadian exports in 2023, according to trade data.
The proposed tariffs appear to contradict the U.S.-Mexico-Canada Agreement (USMCA), which Trump himself signed into law in 2020. The agreement, which maintains largely duty-free trade between the three nations, includes a “sunset” provision that will require renegotiation or withdrawal in 2026.
In response to Trump’s announcements, Mexico’s finance ministry emphasised the existing trade framework. “Mexico is the United States’ top trade partner, and the USMCA provides a framework of certainty for national and international investors.”
The Chinese embassy in Washington, through spokesperson Liu Pengyu, warned against trade confrontation, stating that “No one will win a trade war or a tariff war.” The embassy defended China’s efforts to combat fentanyl production, citing measures implemented following a 2023 U.S.-China meeting.
Chinese Vice President Han Zheng, speaking at a supply chain expo in Beijing, reaffirmed China’s commitment to maintaining open global trade, expressing readiness to work with other nations to preserve stable industrial and supply chains.
Economists have warned that Trump’s proposed tariff regime could have far-reaching consequences. The measures could potentially return U.S. import duties to levels not seen since the 1930s, potentially triggering inflation, disrupting U.S.-China trade relations, and prompting retaliatory measures from affected nations.
The tariffs could particularly affect Asian manufacturers who use Mexico as a production base for accessing the U.S. market. Trump had previously suggested implementing tariffs as high as 200 percent on vehicles crossing the U.S.-Mexico border.
These announcements represent Trump’s most detailed explanation of his economic agenda since winning the November 5 election, building on his campaign promises of “putting America first.” The proposals come at a sensitive time for China, which is currently grappling with property sector challenges, debt concerns, and weakened domestic demand.
The Chinese foreign ministry indicated willingness to continue anti-drug cooperation with the United States, emphasising the need for “equality, mutual benefit and mutual respect” in bilateral relations.
Prior to the November election, Trump had outlined plans for blanket tariffs ranging from 10 to 20 percent on virtually all imports, suggesting a potentially broad restructuring of U.S. trade policy should these measures be implemented.
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