Trump Pledges 25% Tariff on Mexico and Canada, Proposes Additional 10% Tariff on China
Trump Vows 25% Tariffs on Mexico and Canada, 10% on China, Citing Border and Drug Concerns
United States President-elect Donald Trump has announced plans to impose a 25% tariff on all goods imported from Mexico and Canada, along with an additional 10% tariff on Chinese products. Trump framed the measures as a response to irregular border crossings and drug trafficking.
In a post on Truth Social, Trump declared that these tariffs would take effect on the first day of his administration and remain in place until the “invasion” of undocumented migrants and drugs is resolved.
“Mexico and Canada have the power to solve this problem, and until they do, they will face significant consequences,” Trump said.
He also targeted China, stating that the 10% tariff would remain until the country curbs fentanyl smuggling, adding that prior promises from Chinese officials to impose severe penalties on drug dealers had not materialized.
Trump’s announcement sent shockwaves through global markets, with major currencies like the Canadian dollar, Mexican peso, and British pound declining against the US dollar. Asian stock markets also saw significant losses, with Japan’s Nikkei 225 index falling 1.59%.
Canadian Deputy Prime Minister Chrystia Freeland responded diplomatically, emphasizing the mutual benefits of US-Canada trade and ongoing joint efforts to combat fentanyl trafficking. Ontario Premier Doug Ford criticized the proposed tariffs as “devastating” for workers in both countries.
China’s embassy in Washington warned that a trade war would hurt both nations, advocating for cooperation in economic matters.
Economists have expressed concerns about the potential ramifications of these tariffs, which could increase inflation in the US, strain global supply chains, and disrupt the US-Mexico-Canada Agreement (USMCA). Trump’s supporters, however, argue that tariffs would incentivize manufacturing jobs to return to the US and strengthen the administration’s hand in trade negotiations.
If implemented, the tariffs could reshape the economic landscape, with Mexico, Canada, and China being America’s largest trading partners, collectively accounting for over $2.2 trillion in trade in 2022.
