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Donald Trump says he plans to impose 25% tariffs on all US imports from Canada and Mexico, and an additional 10% on Chinese goods, when he takes office in retaliation for illegal immigration and drug trafficking.
In a post on his social media page, Social truth, Trump said he would impose tariffs on Canada and Mexico “on ALL products entering the United States and its ridiculous open borders,” which would remain in place “until Drugs, especially is Fentanyl and all illegal Aliens stop this Invasion.” of our country”.
Trump said tariffs on China would apply to all products, on top of existing duties, and criticized Beijing for not following through on its promise to carry out the death penalty for traders fentanyl, a deadly synthetic opioid.
The announcements serve as the opening salvo in Trump’s confrontational new trade policy, following a sweeping election victory in which he campaigned on sweeping tariffs and criticized partners. US trade.
The US dollar edged higher on the news, putting pressure on other currencies. The Canadian dollar fell more than 1% and the Mexican peso fell as much as 2%, causing the dollar to fall sharply this year.
The Korean won and Australian dollar both fell 0.6% against the greenback. The offshore yuan fell 0.3% to 7.27 Rmb/USD. The euro weakened 0.4% and the pound fell 0.3%.
Mexico, America’s top trading partner, has faced the threat of tariffs from Trump, who during the election campaign said he would impose “any tariffs requested – 100%, 200%, 1,000%” to prevent Chinese cars from being imported from the US. crossing the US from Mexico.
Trump has warned Mexican President Claudia Sheinbaum that he will impose a 25% tax if she does not stop the “onslaught of criminals and drugs” across the border into the US.
The tariffs could be imposed using executive powers that would replace the USMCA, the free trade agreement he signed with the United States’ southern neighbor and Canada during his first term. .
Ahead of the US election, Sheinbaum tried to reassure Mexicans that they had nothing to worry about, saying she was “confident” of having a good relationship with the country that buys three-quarters of its exports. their.
Trump has put the promise of tariffs at the center of his economic vision and told voters he wants steep increases on all products entering the US, with a particular focus on China.
However, Joe Biden’s administration has also increased tariffs on Chinese imports. In May, the country sharply increased tariffs on a range of imported clean energy technologies, including increasing tariffs on electric vehicles from China to 100%.
Biden’s administration has also for years put pressure on Beijing to crack down on production of ingredients used in fentanyl, the drug it estimates will kill nearly 75,000 Americans by 2023.
This summer, China agreed to impose controls on chemicals key to fentanyl production following meetings between senior US and Chinese officials in Washington.
Additional reporting by William Sandlund and Christine Murray
