US President-elect Donald Trump has announced his intention to impose tariffs on imports from Mexico, Canada and China, prompting condemnation from all three countries. Trump posted on his Truth social platform that he would impose a 25% tariff on goods from here Mexico And Canada and a 10% tariff on Chinese imports immediately after taking office on January 20.
Trump has claimed that the tariffs are aimed at stemming the illegal flow of fentanyl Medicinesand immigrants to the United States. However, critics argue that the plan violates the US-Mexico-Canada Agreement (USMCA), a trade deal that Trump himself negotiated and signed into law in 2020. Trump’s post said: “Both Mexico and Canada have the absolute authority and power to resolve this easily. long-simmering issue.”
“It’s time for them to pay a very heavy price!” He also claimed in another post that China has not stopped the smuggling of fentanyl into the US.
Trump often uses trade threats to gain the upper hand in negotiations, but experts warn that this strategy could backfire. That could fuel inflation and disrupt supply chains in closely-linked markets, as reported by USA Today.
China: ‘No one wins a trade war’
China was quick to respond to Trump’s tariff plan. Liu Pengyu, a spokesman for the Chinese embassy in Washington, dismissed Trump’s accusation that Beijing was failing to stop the smuggling of fentanyl precursors. “It is contrary to fact and reality that China is knowingly allowing fentanyl precursors to flow into the United States,” Liu said. “No one will win a trade war or a tariff war,” he added.
Trump has repeatedly targeted China with trade policies during his first term, imposing tariffs on billions of dollars worth of Chinese goods. Experts believe his new plan could reignite tensions and hurt the economy. While the tariffs focus on migration and drugs, some believe the real goal is to limit China’s influence in North America.
“Trump is looking to start pushing China further out of America’s backyard,” said Andrew Law, founder of The Mexico Brief. This declaration of policy is little more than a measure to create trouble between quarreling allies.”
Canada: ‘Devastating for workers’
Canada, one of the United States’ largest trading partners, also expressed concern. Ontario Premier Doug Ford warned that the tariffs would hurt jobs and workers in both countries.
Oil is Canada’s top export to the United States, while the US relies heavily on Canadian-made goods such as auto parts. Trump’s proposed tariffs risk straining economic ties, with trade between the two countries set to peak at $790 billion in 2022.
Ford added that industries such as automobile manufacturing, which depend on seamless cross-border supply chains, would be particularly hard hit. For example, components of a car assembled in the US often cross the border during production.
Experts warn that disrupting these relationships could raise prices for consumers and put thousands of jobs at risk. Trump, however, seems adamant, claiming the tariffs will force Canada to address immigration and drug issues.
Mexico: ‘One tariff response will be another’
Mexico, a major US trading partner with more than $855 billion in annual trade, could be hit hardest by Trump’s tariffs. President Claudia Schönbaum criticized the plan, saying it would hurt both economies.
“The response to one tariff will be another as long as we share the risk companies have,” said Sheinbaum. She pointed to the potential fallout for US companies such as General Motors and Ford, which operate assembly plants in Mexico.
Sheinbaum emphasized his country’s efforts to address migration, citing a “coordinated approach” that has reduced US border encounters by more than 75% since last December. She also suggested that the US Drug problems, especially the fentanyl crisis, are public health problems that require local solutions.
Despite her criticism, Sheinbaum expressed a willingness to engage in dialogue with the incoming Trump administration. “Why put a tax on them that puts them at risk? That’s not acceptable,” she said, calling for a collective approach to tackling shared challenges.