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Amid escalating trade tensions, the governments of Mexico, Canada, and China have strongly responded to the threat from United States President Donald Trump to impose new tariffs of 25% and 10% on imports of products from these three countries.
The measure, which is supposed to come into effect on February 1; yet has not been signed by the president, has elicited strong reactions from international leaders, who point out that the tariffs are not only an economic retaliation but also an action that could further destabilize trade relations and increase costs for consumers.
China stated after a conversation with Donald Trump that "There are no winners in a trade war". After learning a week ago about the new president's intentions to impose a 10% tariff on Chinese imports, the spokesperson for the Foreign Ministry, Mao Ning, stated that China will continue to defend its national interests and assured that the Chinese government's stance towards the new measures will be firm.
Trump justified the imposition of these tariffs by stating that China is responsible for the flow of fentanyl into Mexico and Canada, which has caused thousands of overdose deaths in the United States. Despite the threats, China has made it clear that it will not allow its economy to be affected without a response.
Mexico, for its part, stated that it is calmly reviewing the announcement of a 25% tariff increase and described the measure as a "strategic mistake" that would cost Americans over 20 billion dollars.
The president Claudia Sheinbaum stated that she is open to a respectful dialogue but made it clear that she has "plans A, B, and C" to address any measures taken by the White House.
Similarly, Mexico's Secretary of Economy, Marcelo Ebrard, explained that the proposed tariffs could cost American families around $20.475 billion, impacting everything from tech products to food and vehicles. The Mexican administration is taking steps to protect its economy and has reiterated its commitment to defending the dignity and sovereignty of the Mexican people.
Ebrard pointed out that the border states of the U.S., such as California, Texas, and Florida, will be the most affected by these new taxes, which could lead to a significant increase in the prices of everyday products like computers, televisions, and auto parts. "A 25% tariff is a mistake that not only harms Mexico but also U.S. consumers and businesses," he warned.
Canada also announced on Friday that it is preparing for a "strong response" to Trump's threat to increase tariffs by 25%, just like Mexico.
Prime Minister Justin Trudeau emphasized that his government will take a "strong and immediate response" if tariffs are implemented, as they would affect essential Canadian products in bilateral trade. Trudeau made it clear that Canada is not willing to accept measures that harm its industries and its citizens.
Canadian officials also met with Tom Homan, the White House border czar, in a last-ditch effort to reach an agreement that would prevent the imposition of tariffs. The topics discussed in the talks include fentanyl trafficking control and immigration, but so far there have been no significant advancements.
The new tariffs on Mexico, Canada, and China will not only impact trade relations between these countries and the United States, but could also have global repercussions.
Experts warn that the measure could raise the prices of imported goods, which would lead to an increase in inflation within the United States, a topic that weakened Joe Biden's administration and that Trump promised to reduce if he won the elections.
In fact, the rise in prices of everyday consumer goods such as avocados, gasoline, wood, or vehicle components could profoundly impact both American consumers and businesses.
The imposition of tariffs could further complicate trade negotiations within the Treaty between Mexico, the United States, and Canada (USMCA), which would affect the economic stability of North America. Some analysts suggest that Trump's measure could trigger a chain reaction that destabilizes the economies of the region and negatively impacts global growth.
While Trump justifies the tariffs as a response to the flow of fentanyl and other security concerns, the decision to raise import taxes on these three key countries could have far deeper economic repercussions than anticipated.
Instead of addressing the underlying issues, many experts believe that the measure could escalate the trade war, with negative effects for both the U.S. and its main trading partners.
The newspaper The New York Times considered that the severe tariffs on Mexico, Canada, and China are an attempt to further pressure the United States' largest trading partners to accept more deportees and halt the flow of migrants and drugs into the country.
Apparently, at the last minute Trump is reconsidering the matter. Although he announced on Friday that the measure would come into effect this Saturday, in practice the document has not been signed, there is no press conference scheduled for the coming hours, and the flow across the borders has remained unchanged throughout the day, as noted by the newspaper El País.
Frequently asked questions about the trade tensions between the United States and Mexico, Canada, and China
Why does Trump justify imposing tariffs on Mexico, Canada, and China?
Donald Trump justifies the imposition of tariffs by claiming that these countries facilitate the flow of fentanyl into the United States, which has caused overdose deaths. Trump asserts that the tariffs are a response to hold these countries accountable.
What impact would the imposition of a 25% tariff have on American consumers?
The imposition of a 25% tariff could significantly increase the prices of everyday products such as computers, televisions, and auto parts. American consumers would face a rise in the costs of imported goods.
How do Mexico, Canada, and China respond to Trump's tariff threat?
Mexico, Canada, and China have criticized the measure as a "strategic error" and have indicated that they will take action to defend their economies. These countries are seeking to avoid the implementation of tariffs through negotiations and strong responses.
What economic consequences could the imposition of these tariffs have in North America?
The measure could complicate trade negotiations within the Treaty between Mexico, the United States, and Canada (T-MEC) and destabilize the economies of the region. A negative impact on North America's economic growth is anticipated.
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