Trump's sweeping tariffs shake trade ties with North America and China
Donald Trump has confirmed that his initial economic actions following the January inauguration will involve raising tariffs on products from China, Canada, and Mexico. He justifies this decision with the crises related to drugs and immigration.
"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Donald Trump wrote in a post on his Truth Social platform.
Trump announces tariff increases for Canada, Mexico, and China
The President-elect added that the tariffs would remain in effect until both countries stop drug supplies, particularly fentanyl, and "the invasion of illegal aliens" into the United States.
In a separate post, he announced a 10% tariff increase on "all products coming from China to the United States."
He explained that he often raised the issue of drug inflow from China, especially fentanyl, one of the main culprits of the opioid crisis in the United States, with Chinese officials, who promised severe penalties up to the death penalty for traffickers. However, they never managed to deliver on that promise.
The tariff increase is one of the key promises of the election campaign.
American law provides the President with the necessary tools to enforce tariffs through decrees, something Donald Trump had the opportunity to test several times during his first term when he imposed them on Chinese and European steel and aluminium.
Canadian dollar weakened following Trump's announcements
The Canadian dollar weakened after Trump announced raising tariffs. Media noted that the announcement by the American President-elect also pertains to oil imported from Canada.
Oil from Canada is at the top of the list of Canadian exports to the US, and imposing tariffs may make it challenging for Trump to fulfil another campaign promise concerning reducing the cost of living in the US, as highlighted by the Canadian public broadcaster CBC.
British Columbia Premier David Eby wrote on the X platform: "Trump’s tariffs would hurt Canadians and Americans alike. Canadians must stand united. Ottawa must respond with strength. We’ll never stop fighting for British Columbian families."
"Our relationship today is balanced and mutually beneficial, particularly for American workers. Today, Canada buys more from the United States than China, Japan, France, and the UK combined," stated Deputy Prime Minister and Finance Minister Chrystia Freeland and Public Safety Minister Dominic Leblanc in response to Donald Trump's announcement. They emphasised that Canada is continuously cooperating with the US to end fentanyl smuggling from China and is enhancing the security of its borders.
