President Trump on Saturday followed his threat of imposing rigorous prices in Mexico, Canada and China, paving the way for a destabilizing trade war with the largest trade partners in the United States.
Trump struck Canada and Mexico with 25% prices on all goods, with a sculpture for Canadian energy and oil exports. These will be taxed at 10%. Trump also placed a 10% rate on Chinese products. The samples come into force just after midnight on Tuesday and will be added in addition to existing prices.
The president said he imposed prices until the flow of migrants and illegal fentanyl in the United States is attenuated. But his administration did not do much to explain the other steps necessary to eliminate the prices. Mexico and Canada have both adopted measures to slow down illegal border crossings. These crossings on the American-Mexican border are at their lowest level since 2020, although always higher than for a large part of Mr. Trump’s first mandate.
Mexico has also intensified its efforts to thwart fentanyl smuggling in the United States, in particular by making its biggest fentanyl doses in December. Canada has deployed more drones, helicopters and application agents to better secure the border.
It is not clear what additional measures the Chinese government recently took, if necessary, beyond its previous collaboration of the police with the United States on fentanyl trade. Trump discussed fentanyl with President Xi Jinping in China during a telephone call during his first week in power.
Trump’s weeks of threats to impose prices have given a lot of time in Canada, Mexico and China to reflect on ways to retaliate with prices. Canada said it would tax Orange Florida juice, Tennessee whiskey and Kentucky peanut butter. The decision to strike these products, at least at the beginning, is strategic: they come from states with republican senators and voters who elected Trump in 2024.
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