Trump vows Tariffs on Mexico, Canada, and China on Day One

BBC.com: Peter Hawkins

November 26, 2024

Donald Trump says he will hit China, Mexico, and Canada with new tariffs on day one of his presidency, in an effort to force them to crack down on illegal immigration and drug smuggling into the US. The US president-elect said he would sign an executive order imposing a 25% tariff on all goods coming from Mexico and Canada, after being inaugurated on January 20, 2025. He also said “we will be charging China an additional 10% tariff, above any additional tariffs” until it cracked down on fentanyl smuggling.

The threat could mark a major escalation in tensions with the US’s three top trading partners. It could also lead to higher prices for Americans, since tariffs work as a form of tax on imports. The US is the world’s largest importer. China, Mexico, and Canada account for about 40% of the $3.2tn of goods it imports each year, according to official data.

The measures have the potential to cause disruptions to the global supply chain and would hit the three countries targeted by the tariffs hard. Trump has also said he will end China’s most-favored-nation (MFN) trading status with the US – the most advantageous terms Washington offers on tariffs and other restrictions.

Last year, more than 80% of Mexico’s exports went to the US, while around 75% of Canada’s went to its southern neighbor. Even after years of a bitter trade dispute between the world’s two biggest economies, the US still accounts for about 15% of China’s exports.