Chethana Janith, Jadetimes Staff
C. Janith is a Jadetimes news reporter covering science and geopolitics.
Mexico and Canada are the United States’ top two trading partners, accounting for nearly 30% of trade volumes.
Donald Trump announced on Monday that his administration, if elected, would impose new tariffs on imported goods from Mexico, Canada, and China. The move is a continuation of a key campaign promise and could significantly impact international trade relations.
In a post on Truth Social, Trump stated his intention to implement a 25% tariff on all products imported from Mexico and Canada, citing the fentanyl crisis as a primary justification.
"On January 20th, as one of my 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," Trump wrote. "This tariff will remain in effect until drugs, particularly fentanyl, and illegal immigration stop invading our country."
Trump also announced plans for additional tariffs on China, blaming the country for failing to curb the flow of fentanyl into the U.S.
"I have had many talks with China about the massive amounts of drugs, especially fentanyl, being sent into the United States - but to no avail," he wrote. "Until they stop, we will be charging China an additional 10% tariff on all of their products entering the United States."
In response, the Chinese Embassy in Washington emphasized the mutual benefits of economic cooperation between the two countries and warned against the repercussions of a trade war.
"No one wins in a trade or tariff war," said Liu Pengyu, a spokesperson for the embassy. He added that China had already taken steps to address the illegal drug trade, particularly following a meeting between President Joe Biden and Chinese President Xi Jinping last year.
"Claims that China is knowingly allowing fentanyl precursors to flow into the United States are not based on facts," Liu stated.
Canadian officials highlighted the strong economic ties between the U.S. and Canada, stressing the importance of collaboration on border security and trade.
"Canada places the highest priority on border security and the integrity of our shared border," Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic Leblanc said in a joint statement. "Our relationship is balanced and mutually beneficial, particularly for American workers."
The Mexican Embassy has yet to provide a response to Trump’s announcement.
Mexico and Canada are the United States’ largest trading partners, accounting for nearly 30% of total trade volumes. Industries such as vehicle manufacturing, dairy, paper products, and building materials like wood could face significant disruptions under Trump’s proposed tariffs.
Data from the Department of Homeland Security indicates that most fentanyl seized during smuggling attempts into the U.S. is found in personal vehicles crossing legal borders, often driven by U.S. citizens. Further analysis by the libertarian Cato Institute revealed that from 2019 to 2024, U.S. citizens accounted for 80% of those caught with fentanyl at border crossings.
China, the U.S.'s largest export market, is already subject to numerous tariffs. Many of the tariffs imposed during Trump’s first term remain in place, and earlier this year, the Biden administration raised tariffs on $18 billion worth of Chinese goods, including a substantial increase from 25% to 100% on electric vehicles.
Trump’s campaign trail rhetoric has gone even further, with promises of a 20% blanket tariff on all imports and a minimum 60% tariff on Chinese goods. During a September debate with Democratic nominee Kamala Harris, Trump defended his tariff proposals as a form of repayment for U.S. contributions to the global economy.
“Other countries are going to finally, after 75 years, pay us back for all that we’ve done for the world, and the tariff will be substantial,” Trump said.
However, these tariff plans are likely to face pushback from businesses and lawmakers. Economists and trade groups estimate that tariffs on imported goods could cost Americans an additional $78 billion annually. For example, the price of a $50 pair of shoes could rise to $65, while a $2,000 mattress might cost $190 more. Retailers like Five Below, Wayfair, and Dollar Tree are among those most vulnerable to such a trade war, according to economic analyses.
If enacted, Trump’s proposed tariffs would overturn one of the landmark economic deals of his first term, reshaping trade relationships and potentially increasing costs for American consumers.
