Donald Trump proposes steep tariffs on the United States’ three main trading partners — Canada, Mexico, and China — outlining how he will carry out campaign promises that might spark trade wars.

In reaction to the illegal drug trade and immigration, US President-elect Donald Trump has announced plans to slap a 25% tariff on goods from Mexico and Canada, as well as a 10% tariff on imports from China. On Monday, Trump threatened in a series of postings on his Truth Social social media account that he would impose sweeping tariffs on all goods entering the country. “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,” his letter reads. In a subsequent post, the former and future president said he would also be slapping China with a 10 percent tariff, “above any additional Tariffs,” on all of its products entering the US in response to its failure to tackle fentanyl smuggling.

Key component of Trump’s agenda Tariffs are a significant aspect of Trump’s economic strategy, with the Republican president-elect promising broad tariffs on both allies and rivals while campaigning for his November 5 victory. Many economists have cautioned that tariffs will harm growth and raise inflation because they are mostly paid by importers bringing goods into the United States, who frequently pass those costs on to consumers. However, others in Trump’s inner circle have claimed that the tariffs are a valuable bargaining chip for the US to use to force its trading partners to agree to more favourable terms and to bring back manufacturing jobs from overseas.

China hits back. Mexico’s Ministry of Finance stated: “Mexico is the United States’ top trade partner, and the USMCA provides a framework of certainty for national and international investors.” The offices of Canadian Prime Minister Justin Trudeau and the Canadian Foreign Ministry did not immediately reply to calls for comment. A Chinese embassy spokeswoman in Washington fired back. “China believes that economic and trade cooperation with the United States is mutually beneficial.” “No one will win in a trade or tariff war,” Liu Pengyu stated. The embassy also noted efforts it said China had done since a 2023 US-China meeting, after which Beijing pledged to stop exporting components related to the production of the narcotic fentanyl, a leading cause of drug overdoses in the United States.”All these prove that the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality,” the spokesperson said.