US President-elect Donald Trump said on Monday that he plans to impose massive tariffs on goods from Mexico, Canada and China, prompting an urgent warning from Beijing that “anyone in a trade war Can’t win.”
In a series of posts on his Truth social account, Trump vowed to impose tariffs on all goods entering the country from America’s biggest trading partners.
“On January 20th, as one of my first of many executive orders, I will sign all necessary documents to impose a 25 percent tariff on all products coming into the United States from Mexico and Canada.”
In another post, Trump said he would slap China with a 10 percent tariff, “on top of any additional tariffs,” in response to what he said was its failure to deal with fentanyl trafficking.
The tariffs are a key part of Trump’s economic agenda, with the Republican promising to impose sweeping duties on allies and opponents alike during the campaign.
Both China and Canada issued immediate responses, each describing their trade relations with the US as “mutually beneficial”.
“No one will win a trade war,” Liu Pengyu, a spokesman for China’s embassy in the US, told AFP by email, defending Beijing’s efforts to crack down on fentanyl trafficking.
Liu added that China believes that China-US economic and trade cooperation is mutually beneficial in nature.
Canada said it was “essential” to US energy supplies and insisted the relationship benefits US workers.
“We will certainly continue to discuss these issues with the incoming administration,” Deputy Prime Minister Chrystia Freeland said in a statement.
Trump’s first term in the White House was marked by an aggressive and protectionist trade agenda that targeted China, Mexico and Canada, as well as Europe.
While in the White House, Trump launched an all-out trade war with China, imposing significant tariffs on hundreds of billions of dollars worth of Chinese goods.
At the time, they cited unfair trade practices, intellectual property theft and trade deficits as justifications.
China responded with retaliatory tariffs on American products, particularly affecting American farmers.
The U.S., Mexico and Canada are bound by a three-decade-old free trade agreement, now known as the USMCA, which was renegotiated under Trump after he complained that American businesses, particularly Automakers are losing out.
Wendy Cutler, vice president of the Asia Society Policy Institute and a former US trade official, told AFP, “Mexico and Canada are very dependent on the US market so their ability to fend off President-elect Trump’s threats is limited.”
Citing the fentanyl crisis and illegal immigration, Trump appears to be using national security concerns to break the deal, something that would normally be covered under rules set by the World Trade Organization (WTO) or Allowed in commercial deals.
But most countries and the WTO consider national security exemptions to be used sparingly, not as a regular tool of trade policy.
Trump cited national security justifications for imposing tariffs on steel and aluminum imports in 2018 that targeted close allies such as Canada, Mexico and the European Union.
This led to retaliatory measures by trading partners.
‘Bet on China Tariffs’
Many economists have warned that the tariffs would hurt growth and increase inflation because they are paid primarily by importers who bring goods into the U.S., who often pass those costs on to consumers. are
But those in Trump’s inner circle have insisted the tariffs are a useful bargaining chip for the U.S. to pressure its trading partners to agree to more favorable terms and bring back manufacturing jobs from overseas. .
Trump has said he will put his Commerce Secretary nominee Howard Litnick, a China hawk, in charge of trade policy.
Lutnick has expressed support for a 10pc tariff on all other imports, as well as a 60pc tariff level on Chinese goods.
William Reinsch, a senior adviser at the Center for Strategic and International Studies, said Trump’s move was classic: “Threat and then negotiate.”
“In terms of what might actually happen, I would bet on some China tariffs being implemented. It’s easier legally and more politically palatable,” he said.
“On Canada and Mexico, their trade agreement (USMCA) was due to be renegotiated in 2026 anyway.”