Trump announces tariffs: 25% on Mexico and Canada, 10% on China

This move, according to Trump, addresses issues related to illegal immigration and the trade of illicit drugs. "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," Trump conveyed via his Truth Social platform. Furthermore, Trump criticized China's efforts in curbing illegal drugs from entering the US through Mexico, stating, "Until they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America."

In line with his economic agenda, Trump has previously committed to imposing tariffs to bolster US manufacturing and has specifically targeted China for higher tariffs than those imposed during his first term. Scott Bessent, Trump's nominee for Treasury Secretary, supports the use of tariffs as a negotiation tool. Bessent, in a Fox News op-ed, outlined the multifaceted utility of tariffs in achieving foreign policy objectives, including the deterrence of military aggression and the promotion of US exports.

Trump's tariff strategy, however, is expected to face resistance from trading partners. The United States-Mexico-Canada Agreement (USMCA), which facilitated duty-free trade among the three nations since 2020, could be at risk. Mexico's Finance Ministry highlighted the importance of the USMCA for trade certainty, while Canada's Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic Leblanc emphasized the mutual benefits of their trade relationship with the US. German Economy Minister Robert Habeck also expressed concern over Trump's tariff announcement, advocating for dialogue to prevent a trade war. Habeck stressed the importance of talks at an industry event in Berlin.