US President-elect Donald Trump on Monday announced plans to impose high tariffs on the United States' three biggest trading partners – Canada, Mexico and China. He also outlined details of his economic program, which could lead to trade wars, reports News.bg.
Trump, who will take office on January 20, 2025, has said he will impose 25% tariffs on imports from Canada and Mexico until those countries take action against drug trafficking and illegal migration across the border.
„On January 20th, through one of my many executive orders, I will sign all necessary documents to impose 25% tariffs on Mexico and Canada on ALL products coming into the United States because of their ridiculous open borders ,“ wrote Trump on the social network Truth Social.
In addition, he announced 10% additional tariffs on China as part of his economic policy pledges to “put America first”.
Economic dependence and potential violations of trade agreements
In 2023 over 83% of Mexico's exports and 75% of Canada's exports go to the US. The new tariffs proposed by Trump could violate the terms of the United States, Mexico and Canada Agreement (USMCA), which continues tariff-free trade between the three countries. This agreement was signed by Trump himself and went into effect in 2020.
At the same time, China announced new measures to boost its foreign trade in response to threats of 60% tariffs on Chinese imports, which have created tensions among traders and accelerated the relocation of factories to Southeast Asia and other regions.
International reactions and economic warnings
The governor of the French National Bank and member of the board of the European Central Bank (ECB), Francois Villeroy de Gallo, warned that Trump's plans could lead to a return of inflation in the US and have a negative impact on global economic growth.
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„The program risks a return of inflation in the US,” Villeroy said in an interview with France Inter. “It could also lead to a small drop in global growth. It is not yet clear whether the reduction will be felt more strongly in the US, China or Europe.“
According to him, the main blow from the proposed tariffs will be borne by American consumers.
„Protectionism almost always leads to a reduction in consumer purchasing power,“ Villeroy added.