- Trump announced a 25 percent tariff on all goods from the three countries.
- The spokesperson of the Chinese Embassy says that no one will be able to win the trade war.
- Liu Pengyu says that bilateral trade cooperation is mutually beneficial.
WASHINGTON: As people inside the United States and abroad brace for major policy changes in light of President-elect Donald Trump’s victory in the presidential election, Republicans have said they will impose massive tariffs on goods from Mexico, Canada and China. It is intended to levy duties.
“On January 20th, as one of my first of many executive orders, I will sign all necessary documents to impose a 25% tariff on all products coming into the United States from Mexico and Canada,” Trump said in his Truth. Said on social account.
Trump’s statement came as he vowed in a series of letters to impose duties on all goods entering the country from America’s largest trading partners.
Escalating his policy toward China, Trump said he would slap Beijing with a 10% tariff, “on top of any additional tariffs,” in response to what he said was a crackdown on fentanyl trafficking. is a failure.
Tariffs remain a key part of his economic agenda, with the Republican campaigning for sweeping tariffs on allies and opponents alike.
There are no winners in a trade war.
Both China and Canada issued immediate responses, each describing their trade relations with the US as “mutually beneficial”.
Liu Pengyu, spokesman for the Chinese embassy in the United States, said that no one will win the trade war. AFP via 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, meanwhile, 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 as president 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 he 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.
“Mexico and Canada rely heavily on the U.S. market, so their ability to fend off President-elect Trump’s threats is limited,” said Wendy Cutler, vice president of the Asia Society Policy Institute and a former U.S. trade official. AFP.
Citing the fentanyl crisis and illegal immigration, Trump appears to be using national security concerns to break the deal, something that is usually covered under rules set by the World Trade Organization or in trade deals. Allowed.
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.
Growth at risk, inflation rising
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 10% tariff on all other imports, as well as a 60% tariff level on Chinese goods.
William Reinsch, a senior adviser at the Center for Strategic and International Studies, said the move was a classic of Trump’s “threat and then negotiate” policy.
“In terms of what might actually happen, I’d bet on the implementation of some China tariffs. It’s easier legally and more politically palatable,” he said.
“On Canada and Mexico, their trade agreement was going to be renegotiated. [the USMCA] In 2026 anyway,” he added.