Newly elected US President Donald Trump announced the introduction of high tariffs on products from Canada, Mexico and China.
Trump, who takes office on January 20, 2025, has said he will impose a 25 percent tariff on imports from Canada and Mexico until both countries begin reducing drug supplies, especially fentanyl, and the number of migrants crossing the border .
“On January 20th, as one of my many first executive orders, I will sign all necessary documents to impose a 25% tariff on Mexico and Canada on ALL products entering the United States through their ridiculous open borders,” wrote the president-elect. the social media platform Truth Social.
In the next post, he announced a 10% increase in customs duties, which will be added to existing and additional duties that he will be able to decide, on “all products coming from China to the United States.”
Trump announces new plans for Canada, Mexico and China. Beijing is responding
Liu Pengyu, spokesperson for the Chinese embassy in Washington, commented on Trump’s plans. He emphasized that Beijing believes that Sino-US economic and trade cooperation is inherently beneficial to both sides. “No one will win the trade war or the tariff war,” he added.
The embassy also cited steps China has taken since a bilateral meeting in 2023 in which Beijing agreed to halt exports of goods linked to the production of fentanyl, a leading cause of drug overdoses in the US.
“All this proves that the claim that China knowingly allows fentanyl to flow into the United States is completely inconsistent with the facts and reality,” Liu said, as quoted by Reuters.
What is the future for the trade agreement with the US?
The agency notes that Trump’s threats to impose higher tariffs may violate the terms of the U.S.-Mexico-Canada Trade Agreement (UMSCA), which was signed by Trump in 2018 and officially came into effect in 2020 .
Economists quoted by Reuters say that if Trump’s plans are implemented, they will restore tariffs to 2030s levels, trigger inflation, collapse US-China trade, trigger retaliation and disrupt supply chains will change radically.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
