United States president-elect Donald Trump, who takes office on January 20, 2025, has pledge to impose tariffs on goods coming from Mexico, Canada and China on the first day of his administration, reports Reuters.
“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,” Trump posted on his Truth Social platform. The move, he said, will be in retaliation for illegal immigration as well as “crime and drugs” coming across the border.
Analysts claim that this new tariff would violate the terms of the US-Mexico-Canada Agreement (USMCA), which was signed into law by Trump in 2020 to continue the largely duty-free trade between the three countries.
The move could potentially be an issue for overseas companies which use Mexico as a low-cost production gateway for the US market. These include automotive companies such as Nissan, Mazda and Toyota, while Chinese brands like BYD and SAIC have expressed plans to set up production plants in Mexico.
Trump also said an additional tariff of 10% above any existing tariffs will be imposed on imports from China until it prevents the flow of illegal drugs into the United States. Previously, Trump said that if he was elected back into office, he would slap a 100% tariff on cars (including electric vehicles) from Chinese brands, even if they are made in Mexico.
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