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“On January 20, as one of my many first executive orders, I will sign all necessary documents to impose 25% tariffs on ALL products entering the United States on Mexico and Canada,” the president wrote elected in a publication on his Truth Social network. “This tax will remain in effect until drugs, especially fentanyl, and all illegal immigrants stop this invasion of our country!” »
In a separate post, he announced an increase in customs taxes of 10%, in addition to those already existing and to those additional that he could still decide, on “all the numerous products arriving from China to the United States “.
He explained that he had often raised the problem of the influx of drugs, particularly fentanyl, one of the main culprits of the opioid crisis in the United States, with Chinese leaders who promised to punish him severely, “until the death penalty”, the “traffickers”. “But they never got to the end of things. »
Future trade wars?
National security reasons can be invoked to deviate from the rules set by the World Trade Organization (WTO) but countries generally refrain from using this exception as a regular tool of trade policy.
The increase in customs duties, which he often described as his “favorite expression” during his campaign, is one of the keys to the future economic policy of the president-elect, who is not afraid of relaunching trade wars, notably with China, started during his first mandate.
At the time, he justified this policy by the trade deficit between the two countries and Chinese commercial practices that he considered unfair, also accusing Beijing of theft of intellectual property. China responded with customs duties with harmful consequences for American farmers in particular.
Joe Biden’s administration had maintained certain customs duties on Chinese products and had imposed new ones targeting certain products. “No one will win a trade war,” Chinese diplomacy warned on Tuesday following the statements of the American president-elect. “China believes that trade and economic cooperation between China and the United States is mutually beneficial in nature,” said a spokesperson, Liu Pengyu.
Warning
In the evening, Justin Trudeau’s government for its part considered that the relationship between the two countries was “balanced and mutually beneficial, especially for American workers”. Before recalling as a warning that Canada was “essential for the energy supply” of the United States.
In the country, where 75% of exports go to the United States, the news sent a shock wave. Quebec Prime Minister François Legault said this announcement represented “a huge risk” for the Canadian economy. His British Columbia counterpart, David Eby, said that “Ottawa must respond firmly.”
Mexico “has no reason for concern”, for its part tried to reassure President Claudia Sheinbaum the day after the American election.
The three countries have been linked for thirty years by a free trade agreement, renegotiated under pressure from Donald Trump during his first term.
“Classic Trump move”
The ability of the two neighbors of the United States “to ignore the threats of the elected president is limited” as they depend on it, estimates Wendy Cutler, vice-president of the Asia Society Policy Institute, an American think tank. But analyst William Reinsch points out that their agreement was supposed to be renegotiated in 2026 anyway: “It’s a classic Trump move, threaten and then negotiate.”
Last week’s appointment as Commerce Secretary of Howard Lutnick, CEO of the investment bank Cantor Fitzgerald and a keen critic of China, confirmed the president-elect’s desire to try to bend his trading partners to obtain better agreements and relocate production to the United States.
Concerning China, Donald Trump has promised customs duties of up to 60% for certain products, or even 200% on imports of vehicles assembled in Mexico. He also wants to reintroduce customs duties of 10 to 20% on all products entering the United States and the European Union has already said it is “ready to react” in the event of new trade tensions.
**Given the interconnected nature of the global economy, what are the potential long-term consequences of these tariffs on global supply chains and international investment?**
## World Today News Interview: Tariffs, Trade Wars, and the Global Economy
Welcome back to World Today News. Today, we are discussing the recently announced trade policies by the newly elected President, which have sent shockwaves across the globe. Joining us are two esteemed guests:
* **Dr. Maria Sanchez**, Professor of Economics specializing in international trade, and author of “Navigating Global Trade in Uncertain Times”
* **Ambassador Paul Davis**, Former US trade negotiator and current Senior Fellow at the Global Trade Institute.
Welcome to both of you.
**Section 1: The Impact of Tariffs**
**Host:** Dr. Sanchez, let’s start with the immediate impact of these proposed tariffs on the US economy. What are your thoughts on the potential consequences for consumers and businesses, especially considering the already existing inflationary pressures?
**Dr. Sanchez:**
(Opportunity for Dr. Sanchez to discuss the impact on consumer prices, business costs, and supply chains.)
**Host:** Ambassador Davis, how do you see these tariffs impacting US trade relations with Canada and Mexico, considering their deep economic ties?
**Ambassador Davis:**
(Opportunity for Ambassador Davis to discuss existing trade agreements, renegotiation possibilities, and potential retaliatory measures.)
**Section 2: Trade Wars and International Relations**
**Host:** Dr. Sanchez, some argue that these tariffs are a necessary tool to protect American jobs and industries from unfair foreign competition. What is your perspective on this argument, and how do you weigh the potential benefits against the potential costs?
**Dr. Sanchez:**
(Opportunity for Dr. Sanchez to discuss the complexities of trade protectionism, potential job losses in other sectors, and the impact on global trade.)
**Host:** Ambassador Davis, China has already expressed its opposition to these tariffs, warning of ”no winners” in a trade war. What are the implications for US-China relations, and how might this escalate tensions on the global stage?
**Ambassador Davis:**
(Opportunity for Ambassador Davis to discuss the history of US-China trade tensions, the potential for escalation, and the role of diplomacy in navigating these challenges.)
**Section 3: The Role of Global Cooperation and Alternative Solutions**
**Host:** Both of our guests have highlighted the potential negative consequences of these tariffs. Dr. Sanchez, are there alternative solutions that the US could pursue to address its trade concerns without resorting to such drastic measures?
**Dr. Sanchez:** (Opportunity for Dr. Sanchez to discuss diplomatic negotiations, international trade agreements, domestic policy solutions, and the importance of multilateral cooperation.)
**Host:** Ambassador Davis, looking ahead, what are your hopes and concerns for the future of global trade in the face of these escalating tensions? What role can international organizations like the WTO play in mitigating the risks?
**Ambassador Davis:**
(Opportunity for Ambassador Davis to discuss the importance of a rules-based trading system, the role of the WTO in resolving trade disputes, and the need for international cooperation to address shared challenges.)
**Host:** Thank you both for sharing your valuable insights on this crucial topic. This is a complex issue with far-reaching implications for the global economy and international relations. We hope this discussion has shed light on the key considerations and encouraged further dialog on this important subject.
We encourage our viewers to share their perspectives and join the conversation online.
