Trump: Tariffs to be Imposed on Mexico, Canada, and China

Facts

• US Pres.-elect Donald Trump on Monday pledged to use an executive order to impose tariffs on Canada, Mexico, and China after entering office on Jan. 20, 2025.^[1][2]
• Trump said he'd levy a 25% tax on all goods coming in from Canada and Mexico while Chinese products would attract an extra 10% on top of additional tariffs he plans to impose through executive orders. The President-elect claimed he'd continue with tariffs until these nations curbed alleged illegal immigration and drug trafficking.^[3][4]
• Posting on his Truth Social platform, Trump said Mexico and Canada have the "absolute right and power" to stop "this invasion of our country." He also said drugs and crime were entering the US "at levels never seen before."^[5][6]
• $1.5T worth of goods moves annually between the US, Canada, and Mexico. The US and China reportedly exchange $600B of goods annually.^[7][8]
• Following his posts, Trump reportedly spoke with Canadian Prime Minister Justin Trudeau, according to a Canadian government official speaking anonymously. Meanwhile, a spokesperson for China's Washington, D.C. embassy stated, "No one will win a trade war or a #tariff war."^[9][10]
• Following Trump's statements, currency markets — including the Canadian dollar and Mexican peso — dropped against the US dollar. Most of Asia's stock indexes also fell.^[4][11]

Sources: ^[1]CNN, ^[2]FOX News, ^[3]Sky News, ^[4]Al Jazeera, ^[5]Truth Social (a), ^[6]Truth Social (b), ^[7]The Washington Post, ^[8]NBC, ^[9]Associated Press, ^[10]BBC News and ^[11]Reuters.

Narratives

• Republican narrative, as provided by New York Post and FOX News. Pres.-elect Trump's bold tariff strategy offers both a transformative vision for the US economy and a strong tool to achieve foreign policy goals. He aims to revitalize American manufacturing, protect domestic jobs, and counter unfair trade practices from nations like China. These tariffs will create a fairer global market, penalizing countries that exploit the system while favoring US workers. Moreover, the revenue from tariffs could fund critical initiatives while incentivizing companies to invest at home.
• Democratic narrative, as provided by The New York Times and AZ Central. Donald Trump has primed an economic time bomb that would devastate US industries, inflate consumer prices, and shatter global supply chains. His policies risk a trade war, skyrocketing costs, and widespread job losses in industries reliant on integrated North American and global trade. His plan undermines existing trade agreements, destabilizes diplomatic ties, and ignores the reality that tariffs are paid by US consumers and businesses. This short-sighted policy guarantees economic pain without solving financial issues in the long run.

Predictions