Donald Trump confirmed Monday that his first economic measures after his inauguration in January will be to increase customs duties on products coming from China but also from Canada and Mexico, decisions that he justifies by the crises linked to opiates and immigration.
“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.”wrote the president-elect 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! »he added.
In a separate post, he announced an increase in customs taxes of 10%, which is added to those already existing and to those additional that he could still decide, on “all the many 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 him severe punishment, “until the death penalty”THE “traffickers”. “But they never got to the end of things. »
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.
Shipping containers and gantry cranes at a port in Lianyungang, east China’s Jiangsu province, August 7, 2024 / STR / AFP/Archives
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 to relaunch the trade wars, particularly with China, started during his first term.
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”warned Chinese diplomacy on Tuesday following the declarations of the American president-elect. “China believes that trade and economic cooperation between China and the United States is mutually beneficial in nature”underlined a spokesperson, Liu Pengyu.
Warning
In the evening, the government of Justin Trudeau 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 energy supply” of the United States.
Canadian Prime Minister Justin Trudeau, October 14, 2024 in Ottawa / Dave Chan / AFP/Archives
In the country, where 75% of exports go to the United States, the news sent a shock wave. Quebec Prime Minister François Legault considered that this announcement represented “a huge risk” for the Canadian economy. His British Columbia counterpart, David Eby, estimated that“Ottawa had to respond firmly”.
Mexico “has no cause for concern”had 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.
The capacity of the two neighbors of the United States “to ignore the threats of the president-elect is limited” they depend on it so much, estimates Wendy Cutler, vice-president of the Asia Society Policy Institute, an American think tank.
But analyst William Reinsch points out that their agreement had 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 “ready to react” in the event of new trade tensions.
Economists warn of the inflationary potential of such an increase in customs duties.
Here are two PAA-related questions for the provided text:
## World Today News Interview: Trump’s Tariff Offensive
**Welcome to World Today News. We are here today to discuss President-Elect Donald Trump’s announcement of new tariffs on goods from China, Canada, and Mexico. Joining us are two experts:**
* **Dr. Emily Carter**: Professor of Economics at Columbia University, specializing in international trade.
* **Mr. David Chen**: Senior Fellow at the Center for Strategic & International Studies, focusing on US-China relations.
**Introduction:**
Mr. Trump has stated that these tariff increases are necessary to address the influx of drugs, particularly fentanyl, and illegal immigration. He also claims these measures will protect American jobs and bolster domestic manufacturing.
**Section 1: Economic Impacts**
* **Dr. Carter**: What are the potential economic ramifications of these tariff increases, both domestically and internationally?
* **Mr. Chen**: How might these tariffs affect existing trade agreements, particularly the USMCA, and future trade negotiations?
* **Open to both guests**: Economists have expressed concerns about potential inflationary pressures. Can you elaborate on this concern and how it might impact everyday Americans?
**Section 2: Addressing Drug Trafficking and Immigration**
* **Mr. Chen**: Mr. Trump has linked these tariff increases to combating drug trafficking and illegal immigration. How effective do you think this strategy will be in addressing these complex issues?
* **Dr. Carter**: Some argue that these tariffs will disproportionately impact low-income Americans who rely on affordable goods. What are your thoughts on this argument?
* **Open to both guests**: Are there alternative strategies that could more effectively address drug trafficking and immigration concerns without resorting to tariffs?
**Section 3: Geopolitical Implications**
* **Mr. Chen**: China has warned against a “trade war,” stating that it would be harmful to both countries. How might these tariffs affect US-China relations in the long term?
* **Dr. Carter**: What are the potential implications for Canada and Mexico, given their strong economic ties to the United States?
* **Open to both guests**: Do you anticipate a retaliatory response from these countries, and if so, what form might it take?
**Section 4: Future Outlook**
* **Mr. Chen**: How do you see this move shaping Mr. Trump’s economic agenda and his overall relationship with the international trading community?
* **Dr. Carter**: What are the potential long-term consequences of these tariffs on the global economy and international trade?
* **Open to both guests**: As we look ahead, are there any potential opportunities for cooperation or de-escalation amid these trade tensions?
**Closing:**
Thank you, Dr. Carter and Mr. Chen, for sharing your valuable insights. This is a complex and evolving situation with significant implications for the global economy.
**We encourage our viewers to continue following this story and engage in constructive dialog about its potential consequences.**
