President-elect Donald Trump has threatened to impose sweeping new tariffs on Mexico, Canada, and China as soon as he takes office, targeting illegal immigration and drug trafficking. He plans to impose a 25% tax on all products entering the US from these countries, with significant implications for Canada’s economy.
The move comes despite falling arrests of people trying to cross the border from Mexico, which has been near four-year lows. However, arrests on the Canadian border have risen over the past two years, and more than 14,000 of those arrested were Indian migrants.
Trump’s threats raise concerns about the impact on Canada’s economy, with 75% of its exports going to the US. The tariffs would also throw doubt on the reliability of the 2020 trade deal brokered in large part by Trump with Canada and Mexico.
The Canadian government has emphasized its close relationship with the US and said it will discuss the border and economic ties with the incoming administration. Mexico’s Foreign Relations Department and Economy Department had no immediate reaction to Trump’s statements.
The proposed tariffs would pose an enormous challenge for the economies of Canada and Mexico, in particular. It remains to be seen how Trump will legally apply these tariff hikes and what impact they will have on prices in the US.
Trump’s threats are a reminder that his presidency has been marked by protectionist trade policies, which led to retaliatory tariffs from other countries. The Canadian government warned against such action last time, saying it would harm American workers.
Source: https://apnews.com/article/trump-tariffs-canada-mexico-china-59239afe12033ca99c65c7a2be0e4f0d