Donald Trumpas he promised, returns to the attack with a commercial plan that targets border partners. The president-elect announced 25% duties on all goods imported from Mexico and Canadaa move aimed at blocking irregular immigration and drug trafficking. The news, disclosed through a series of posts on Truth (his social network), is accompanied by the promise of immediate action: “On January 20th I will sign all the documents necessary to impose 25% duties on all products entering the United States” . Trump did not hold back and then defined the borders with the two neighboring countries as “ridiculous”, implying that the current rules of cooperation are no longer welcome.
The consequences of a Trump tariff increase
The impact of these tariffs, if they were applied, would be very serious. With over the83% of Mexican exports and the 75% of Canadian ones directed at the United States, the blow could profoundly shake the economies of the two neighboring countries.
The effects have already been seen on the currency markets, with the Mexican peso in free fallreaching the lowest levels of the year. But it doesn’t end there: for the United States, the risk of rising inflation looms, adding further pressure on consumer prices.
Threats of this magnitude leave little to the imagination: economic and political tensions between the three countries loom. It is not just a question of tariffs, but a real earthquake in commercial relations that could rewrite the rules of the game.
The USMCA agreement hangs by a thread
The new measures call into question the validity of the USMCA trade agreement, signed by Trump in 2020. This treaty guarantees almost tariff-free trade relations between the United States, Mexico and Canada. Mexico, the United States’ main trading partner, responded by reiterating the importance of the USMCA as a framework for national and international investors.
The announcement also generated apprehension in Canada, where the prime minister Justin Trudeau discussed the issue with Trumpas reported by Reuters. For Mexico, however, the issue is intertwined with the defense of its economy, which is heavily dependent on trade with the United States.
10% duties on China: fentanyl and economic relations under accusation
Trump has reserved a different treatment for China, proposing a 10% duty on all imports until Beijing ends the flow of fentanyl precursors (chemicals used as raw material to synthesize the drug) to the United States. Accusing the Chinese government of not respecting its commitments to stop trafficking in the dangerous substance, Trump attacked Beijing for its alleged failure to apply the death penalty against drug traffickers.
China responds: “No one wins trade wars”
Beijing has not remained silent. The Chinese embassy in Washington reacted immediately, reiterating a position that seems more like a diplomatic lesson than a commentary: “China believes that economic and trade cooperation between China and the United States is inherently mutually beneficial. No one will emerge victorious from a trade or tariff war.” The spokesperson’s words reflect one vision diametrically opposed to that of Trumpalready the protagonist of tariff clashes with the Asian giant in the past.
