Trump Vows Higher Tariffs On Canada, Mexico, And China

President-elect Donald Trump has pledged sweeping tariffs on the United States’ three largest trading partners—Canada, Mexico, and China—reigniting concerns over potential trade wars, reported Costas Pitas, Kylie Madry, and Jasper Ward for Reuters.

Economists have also flagged the potential for trade retaliation and further disruptions in North American supply chains.

Trump announced plans to impose a 25% tariff on Canadian and Mexican imports, citing the need for stricter controls on drugs and illegal migration. He also detailed an additional 10% tariff on Chinese goods, adding to existing tariffs.

The proposed measures, which Trump claims will take effect via executive orders on his inauguration day, appear to conflict with the US-Mexico-Canada Agreement (USMCA), a trade pact he signed into law in 2020.

“On January 20th, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on all products,” Trump declared, criticizing "ridiculous open borders."

Experts warn that the tariffs could exacerbate inflation and raise prices for American consumers.

The National Retail Federation pointed out that imports from China account for a significant portion of products sold by U.S. retailers like Amazon, which sources 80% of its goods from China.

Economists have also flagged the potential for trade retaliation and further disruptions in North American supply chains.