Trump increases tariffs on products from China, Canada and Mexico

His campaign commitment to increasing products from China, but also from Mexico and Canada is ready to implement with Beijing react. Donald Trump confirmed that the first measure that he will implement in the field of the economy immediately after he is sworn in January will be the increase in customs duties on products imported into the US from China, but also from Mexico and Canada, decisions he justified by citing opioid and illegal immigration crises. “On 20 January, as one of my first (executive presidential) decrees, I will sign all the necessary documents to impose customs duties on Mexico and Canada 25% on all products entering the US,” he said, typing the word “all” in capital letters, the elected president via Truth Social. Customs “will remain in force until drugs, especially fentanyl, and all illegal immigrants stop invading our country!” added Mr Trump. In a separate post on the website which is a personal creation, he announced an additional duty of 10%, which will be added to the predecessors and those who will decide, to “all” the “multiplicity of products arriving from China in the USA”. How did he justify his decision to justify this decision by citing the ‘massive’ drug trafficking towards the US market, ‘especially fentanyl’, a very powerful opioid that is largely incriminated by the ongoing public health crisis in his country, and in this regard Beijing’s ‘disrupted’ promises on the issue, such as that the death penalty will be imposed on dealers of that substance or chemical precursors. In general, there is the possibility of calling for national security reasons to circumvent the rules laid down by the World Trade Organisation (WTO), but its Member States generally avoid recourse to this exception, let alone turning it into a commercial policy tool. The increase in customs duties, which Mr Trump often described during his campaign of “beautiful words” or “loved expression”, was long overdue as being one of the keys to the future economic policy of the elected president. The Republican is not afraid of the resumption of trade wars, especially with China, that he had triggered during his first term (2017-2021). At the time, he justified this choice by citing the US trade deficit against China and Chinese commercial practices that he termed unfair, accusing Beijing in particular of stealing intellectual property. The Chinese government had retaliated, imposing in turn duties that had specifically affected the American agricultural sector. Democratic outgoing president Joe Biden’s government has maintained certain duties on Chinese products and imposed new ones, targeting certain species. “No one will win a trade war” “No one will win a trade war,” Chinese diplomacy warned, responding to yesterday’s announcement of the elected president of the US. “China believes that economic and commercial cooperation between China and the US is mutually beneficial by nature,” added in a written position the Chinese embassy representative in the American capital, Liu Pengyu. On her side, the Canadian Prime Minister Justin Tridot’s government ruled last night that the relationship between the two countries is “balanced and mutually beneficial, above all for American workers”. Before reminding, he saw a warning, that Canada is “absolutely necessary for the energy supply” of the US. In this country, 75% of exports to the American market caused shock. The Prime Minister of the province of Quebec Francois Lego considered that a “great danger” arises for the Canadian economy. His counterpart in the province of British Columbia David Ebi appreciated that “Ottawa should answer with determination”. Mexico “has no reason to worry,” President Claudia Shainbaum tried to reassure herself the day after the election in the US. The three countries have been associated, for thirty years, with a free trade agreement, which has been renegotiated under the pressure of Donald Trump during his first term. The margins that the two U.S. neighbours have to “ignor the threats of the elected president are limited”, because they depend critically on the American economy, noted Wendy Cutler, vice president of Asia Society Policy Institute, an American study centre. First he “threats” and “after he negotiates” For analyst William Raines, in order to remain in force the tripartite deal will necessarily need a new negotiation in 2026: yesterday’s announcements “are Trump’s classic move”, first “threats” and “after he negotiates”, he remarked. His announcement last week that he will name Secretary of Commerce Howard Latnik, president and CEO of the Cantor Fitzgerald investment bank which treats China with contempt as a stool, confirmed that the elected president intends to force his trading partners to accept more favourable terms for Washington and to at least partially restore industrial production to the US territory. Especially for China, Donald Trump has promised to impose 60% duties on some products, as well as 200% on cars assembled in Mexico. It is also intended to re-impose duties of 10 to 20% on all goods imported into the US and the European Union has already made it clear that it is ‘ready to react’ in the event of new tensions in the commercial field. Economists do not stop warning of the potential new rise in inflation due to the increase in customs duties.