In a bold statement, Donald Trump announced his plans to impose tariffs on America’s biggest trading partners, Canada, and Mexico. He also added additional duties on Chinese imported goods. The measures will take effect the day after he takes office, demonstrating his commitment to changing U.S. Trade Policy.
Trump announced a 25% tariff on all imports coming from Canada and Mexico. He cited the issues of illegal immigration and trafficking in illicit drugs such as fentanyl.
He said on Truth Social that “on January 20th as one of many Executive Orders I will sign, I’ll charge Mexico and Canada 25% tariffs on ALL products entering the United States.”
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) November 26, 2024
The President-elect announced an additional 10 percent tariff for Chinese goods to the existing trade sanctions. Trump claimed that Beijing had failed to act against the flow of illegal drugs from Mexico entering the U.S., an accusation meant to hold the Chinese government responsible for its role in the global trade dynamics.
These tariffs are a major escalation of Trump’s economic policy and build on his trade wars during his first term. Analysts say that the proposed tariffs may violate the U.S.-Mexico-Canada Agreement (USMCA), a deal that was signed by Trump’s administration to promote duty-free trading between the countries.
The markets reacted quickly, as the U.S. Dollar climbed against the Mexican Peso and Canadian Dollar, while U.S. Stock Futures fell. Economists believe that tariff increases could cause inflation, disrupt supply chains, and lead to retaliatory actions from the affected countries.
Trade experts have criticized the announcement, warning of 1930s-style protectionism. The debate about Trump’s aggressive trade policies will dominate the economy in the months to come as he prepares to assume office.
