Official announcements from either the US or Chinese government regarding negotiations

Trump to Impose 25% Tariffs on Mexico, Canada; 10% on China to Curb Immigration, Drugs

Nov 26, 2024, 11:17 AM

President-elect Donald Trump has announced plans to impose significant tariffs on Mexico, Canada, and China on his first day in office. The proposed tariffs include a 25% levy on all goods from Mexico and Canada, and a 10% increase on imports from China. Trump stated that these measures aim to address issues related to illegal immigration, drug trafficking—particularly the flow of fentanyl—and unfair trade practices. The announcement has already impacted financial markets, with Mexico’s peso and Canada’s dollar experiencing declines, and European shares falling as automakers tumble on tariff fears. Experts warn that immediate and unilateral tariffs could mean "going nuclear" on the USMCA trade agreement, with Deutsche Bank's George Saravelos noting that a lack of strong market reaction may encourage further escalation. ING is preparing for potential fallout from Trump's pledges, underscoring the global economic impact. Canadian Prime Minister Justin Trudeau is set to address the issue in the House of Commons, while China has expressed openness to dialogue following the announcement, stating that "there is no winner in a trade war."