After his inauguration on the 20th of January 2025, US President-elect Donald Trump pledged on Monday, the 25th of November, to swiftly impose a 25% tariff on imports from Canada and Mexico to tackle drug smuggling and migration in potential violation of the free trade agreement, as well as an “additional 10% tariff on top of any additional tariffs” on imports from China, making some of his most specific comments on how he will implement his economic agenda since winning the election in which he promised to “put America first”, reports Reuters.
“On the 20th of January, as one of my many first executive orders, I will sign all the necessary documents to levy a 25% tariff on ALL products coming into the US from Mexico and Canada and their ridiculous open borders,” he said in a post on Truth Social.
In 2023, over 83% of Mexican and 75% of Canadian exports were exported to the US.
Trump’s proposed 25% tariff on Canada and Mexico threatens to violate the USMCA trade agreement he signed in 2020 to maintain largely duty-free trade between the three countries. Experts believe that the tariffs could be aimed at pressing for an early review of the USMCA, which is not expected until 2026.
Following his tariff threats, Trump had discussed trade and border security issues with Canadian Prime Minister Justin Trudeau, with both sides agreeing to keep in touch.
Ricardo Monreal, leader of the lower house of the Mexican parliament and a member of the ruling Morena party, called for “bilateral institutional mechanisms to combat trafficking of people, drugs and arms” rather than for an escalation of trade.
Trump accused China of not doing enough to combat the flow of illegal drugs into the US. “Until they are stopped, we will impose an additional 10% tariff on China, on top of any other tariffs, on all of its many products that it brings into the United States,” Trump said.
A spokesman for the Chinese embassy responded by pointing out that “nobody wins in a trade war” and “China-US economic and trade cooperation is inherently mutually beneficial”.
The embassy spokesman pointed to the measures China has taken since the 2023 US-China meeting, after which Beijing agreed to suspend exports of goods related to the production of the opioid fentanyl. “All of this proves that the idea that China is knowingly allowing fentanyl precursors to flow into the US is completely inconsistent with the facts and reality,” the spokesperson said.
Economists argue that Trump’s overall tariff plans, which are likely his most serious economic policy, will increase US import tax rates to 1930s levels, cause inflation, disrupt US-China trade, trigger retaliation and dramatically alter supply chains.
Experts also point out that tariffs are imposed on companies that import products that are subject to taxes, and companies either have to pass these costs on to consumers or accept lower profits.
Separately on Monday, US Judge Tanya Chutkan dismissed the federal criminal case
accusing Donald Trump of trying to overturn his defeat in the 2020 election, following a request by the lead prosecutor, Jack Smith, who is overseeing both cases, a request to drop the prosecution, and the reopening of a second criminal case, in which Trump was accused of illegally possessing classified documents when he left office in 2021, citing the Justice Department’s law against prosecuting a sitting president.
The judge’s order ends federal efforts to prosecute Trump for his attempts to retain power after losing the 2020 election, which culminated on the 6th of January 2021 when a mob of his supporters stormed the US Capitol, giving the Republican President-elect a major legal victory.