President-elect Donald Trump said on Monday (25) that his administration will impose new tariffs on imported products from Mexico, Canada, and China, solidifying an important campaign promise that could have a significant impact on the American economy.
Trump stated in a post on Truth Social that he plans to impose a 25% tariff on imported products from Mexico and Canada.
“On January 20, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and their ridiculous Open Borders,” Trump wrote. “This Tariff will remain in place until the Drugs, particularly Fentanyl, and all Illegal Immigrants stop this invasion into our Country!”
Trump also mentioned that he will impose additional tariffs on China.
“I have had many conversations with China about the enormous amounts of drugs, particularly Fentanyl, being sent to the United States — but with no success,” Trump wrote. “Until they stop, we will charge China an additional 10% tariff, on top of any tariffs, on all their many products coming into the United States of America.”
Why are Trump’s new threats relevant?
If Trump truly follows through on his promise – which is no longer a campaign promise but rather that of a democratically elected president – he will likely be shooting himself in the foot. Let’s remember that the Republican candidate was elected, above all, by an electorate dissatisfied with the high inflation of recent years, which has greatly increased the cost of living in the country. The measure suggested by the president will certainly raise inflation, which has been showing a declining trend in recent months.
Canada, Mexico, and China are the three largest trading partners of the United States. Daily, thousands of products from these three countries are consumed by Americans. Contrary to what Trump says, those who will pay the additional cost caused by the higher tariffs will not be the producers, but rather the consumers. And the consumers from hundreds of industries. Goods valued at over $1.5 trillion are traded with the three nations. U.S. imports from Mexico include cars, machinery, electrical equipment, food, and beer. Canada supplies oil and gas, machinery and parts, and materials for home construction. The United States relies on China for electronics, especially phones, along with toys, furniture, and plastics, among many others.
And to top it off, the three countries, which have important trade agreements with the United States, will not passively accept Trump’s decisions. Mexico’s president, Claudia Sheinbaum, said on Tuesday (26) that she will certainly impose tariffs in retaliation to the president-elect’s proposals.
If Trump is serious or if his announcement about tariffs on social media is just another one of his inflammatory and controversial statements aimed at keeping him in the media spotlight, we will find out starting January 20, 2025.
Source: NBC and Axios