China and Mexico React to Trump’s Tariff Threats
China and Mexico have criticized Donald Trump after he threatened to begin his presidency with immediate tariffs targeting the United States’ three largest trade partners.
Trump took to social media to announce his plans, promising steep import duties on Canada, Mexico, and China if they do not address issues related to illegal immigration and drug smuggling into the US.
China responded by warning that “no one wins a trade war,” while Mexican President Claudia Sheinbaum vowed a reciprocal response for every tariff imposed. In Canada, Prime Minister Justin Trudeau had a productive conversation with Trump but did not disclose further details.
The proposed tariffs could have significant global repercussions, escalating tensions with China, disrupting international markets, and straining relations with neighbouring Canada and Mexico.
Following the announcement, stock markets experienced turbulence. Trump stated on his Truth Social platform that he would implement the tariffs immediately upon assuming office on January 20 if his demands were not met, although the specifics of these demands remain vague.
This move indicates a return to Trump’s previous governing style, marked by sudden policy announcements and significant shifts communicated through social media. It underscores his intention to use US economic power to address issues like crime and migration rather than solely focusing on trade-related matters.
On the following day, Trump appointed Jamieson Greer as his trade representative and Kevin Hassett as his chief economic adviser, both of whom held key positions during his first administration.
“I will sign all necessary documents to impose a 25% tariff on all products coming into the United States from Mexico and Canada,” Trump declared online. He also announced a 10% tariff on Chinese imports, accusing Beijing of failing to combat fentanyl smuggling.
In response, China’s embassy in the US emphasized the mutual benefits of economic ties between the two countries. Meanwhile, Mexican President Sheinbaum denounced Trump’s claims and tariff threats as baseless and counterproductive.
Sheinbaum highlighted that threats and tariffs would not resolve the migration issue or drug consumption in the US. She pointed out the link between US demand for drugs and the narcotics trade in Mexico, as well as the flow of illegal weapons from the US into Mexico exacerbating violence.
During his previous term, the US imposed tariffs on billions of dollars worth of Chinese imports, leading to retaliatory measures from Beijing that significantly impacted US farmers. Economists caution that tariffs often result in higher consumer costs and can hamper economic growth, as importers typically pass on increased expenses to consumers.
Trump also revealed Howard Lutnick, a vocal critic of China, as his commerce secretary-designate, underscoring the role of anti-China sentiment in shaping future trade policies.
