United States of America (USA) President, Donald Trump
China and Mexico reacted strongly Tuesday after President-elect Donald Trump threatened to initiate a trade war against the United States’ top economic partners—Canada, Mexico, and China—right at the start of his presidency.
In a series of social media posts, Trump announced he would impose hefty import tariffs on Canada and Mexico, as well as on China, unless they take action to curb illegal immigration and drug trafficking into the United States.
China responded with a warning that “no one will win a trade war,” while Mexican President Claudia Sheinbaum cautioned that “for every tariff, there will be a response in kind.”
A Canadian government source indicated that Prime Minister Justin Trudeau spoke with Trump, describing their conversation as “productive,” though details were not provided.
The proposed tariffs raise concerns about potential disruptions to the global economy, escalating tensions with China, and strained relations with the US’s two closest neighbors. Following Trump’s announcements, stock markets experienced “volatile trading conditions,” according to City Index analyst Fawad Razaqzada.
On his Truth Social platform, Trump reiterated his intention to enact these tariffs upon taking office on January 20, 2025, should his vaguely articulated demands go unanswered.
These statements reflect Trump’s desire to revert to the governing style of his first term, marked by sudden, significant policy shifts often broadcasted via social media. It also confirms his commitment to leveraging US economic power to address issues that extend beyond trade, particularly regarding foreign crime and immigration.
On Tuesday, Trump appointed Jamieson Greer as his trade representative and Kevin Hassett as his chief economic advisor, with both having previous roles in his administration, including Greer’s service as Chief of Staff to former US Trade Representative Robert Lighthizer.
Trump stated, “I will sign all necessary documents to impose a 25 percent tariff on all products coming from Mexico and Canada,” adding that these tariffs would remain until illegal drug flow and immigration cease. Regarding China, he announced a 10 percent tariff would be levied “above any additional tariffs,” blaming the country for inadequately addressing fentanyl smuggling.
In response, Chinese embassy spokesman Liu Pengyu asserted, “China believes that China-US economic and trade cooperation is mutually beneficial in nature.”
Mexico’s Sheinbaum countered Trump’s threat, labeling it “not acceptable” and grounded in false claims. She emphasized, “It is not with threats or tariffs that migration will be halted or drug consumption reduced in the United States,” and highlighted that the Mexican narcotics issue primarily caters to US demand.
A senior adviser at the Centre for Strategic and International Studies, William Reinsch, suggested that Trump’s threats may be a negotiation tactic of “threaten and then negotiate.” However, his first term was defined by a confrontational and protectionist trade agenda that included significant tariffs on goods from China, Mexico, and Canada.
Economists warn that such tariffs could negatively impact US economic growth and lead to increased inflation, as the costs are typically passed on to consumers. Trump has indicated that his Commerce Secretary-designate, Howard Lutnick, a known advocate for a tough stance on China, will oversee trade policy.
