Trump Threatens Trade War with Canada, Mexico, and China
9
World
November 26, 2024 07:00
washington - President Trump announces plans to impose import tariffs on Canada, Mexico, and China citing concerns over drug trafficking and illegal immigration.
President Trump is steering towards a trade war with Canada, Mexico, and China even before taking office. In a Monday evening social media post, the Republican revealed his intentions to impose a 25 percent import tariff on all products from Canada and Mexico due to their alleged insufficient efforts in controlling the flow of migrants and drugs into the US.
Trump stated, "This tariff will remain in effect until this invasion of drugs, particularly fentanyl, and all illegal migrants stops." He also announced plans to sign a presidential decree immediately after his inauguration on January 20.
China is also under fire as it produces raw materials for fentanyl. The President plans to impose a generic additional import tariff of 10 percent on the country, citing China's lenient actions against drug criminals and failure to uphold previous agreements.
The announced measures have the potential to trigger a trade war. The three North American countries trade over $1.5 trillion worth of goods amongst themselves. The trade between the US and China amounts to approximately $600 billion. It is expected that the affected countries will retaliate if Trump follows through with his plans in January.
Experts caution that Trump's actions could violate existing trade agreements between the North American countries and effectively destroy them. The USMCA agreement allows goods to pass between the US, Canada, and Mexico without tariffs.
The US mainly imports oil and cars from its two neighboring countries. Economists warned during the election campaign that Trump's tariff plans could reignite inflation. The Republican had promised voters import tariffs on China ranging up to 60 percent and 10 to 20 percent for other countries.
Scott Bessent, the nominated Treasury Secretary, stated that these were extremes and the sanctions should be seen primarily as a negotiating leverage.