On 26 November, Donald Trump proceeded with one of his main campaign promises by announcing plans to impose new tariffs on Mexico, Canada and China, the three main partners of the United States, accounting for more than 40% of the US imports last year.
Around 20 days after winning the election, Trump announced the introduction of a 25% tariff on all goods coming to the United States from Mexico and Canada and an additional 10% tariff on all imports from China. The effective date is expected to be the 20th of January, the day Trump will officially take over his duties.
Trump is using tariffs not to protect domestic production but as political leverage, according to Statista. In the case of Mexico and Canada, he announced that the tariffs would remain effective until both countries stop drugs and illegal immigrants from “pouring” into the US, something the new US president claims they could easily do. The additional tariff on Chinese goods hinges on the Chinese government’s willingness to crack down on drug production and trade, as China has been found to be the major source of fentanyl precursors.
The newly-announced tariffs are expected to hurt both US consumers, who would likely end up paying higher prices, and businesses, who rely on critical inputs from China, Canada and Mexico and would have to reset their entire supply chain strategy.
