US President-elect Donald Trump announced plans to impose significant tariffs on the United States’ three largest trading partners including Canada, Mexico, and China, when he takes office in January 2025, Reuters reports.
Trump proposed a 25% tariff on imports from Canada and Mexico until they address issues like drug trafficking and illegal migration, a move that could violate the US-Mexico-Canada Agreement (USMCA), which ensures duty-free trade among the three countries. He also announced an additional 10% tariff on Chinese goods due to concerns over drug-related issues, citing China’s failure to stop the flow of fentanyl into the US.
The proposed tariffs could strain relations with US trade partners, disrupt trade and supply chains, and raise costs for businesses and consumers. Critics argue that these policies might drive up inflation and potentially trigger trade wars.
