Trump vows big tariffs on Mexico, Canada and China

Trump vows big tariffs on Mexico, Canada and China
Donald Trump warned repeatedly during the election campaign that he would impose tariffs, but experts warn that the costs could be passed on to American consumers (Allison ROBBERT/AFP)

U.S. President-elect Donald Trump said Monday he intends to impose sweeping tariffs on goods from Mexico, Canada and China, prompting a swift warning from Beijing that "no one will win a trade war."

In a series of posts to his Truth Social account, Trump vowed to hit some of the United States' largest trading partners with duties on all goods entering the country.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent tariff on ALL products coming into the United States," he wrote.

In another post, Trump said he would also be slapping China with a 10 percent tariff, "above any additional Tariffs," in response to what he said was its failure to tackle fentanyl smuggling.

Tariffs are a key part of Trump's economic agenda, with the Republican vowing wide-ranging duties on allies and adversaries alike while he was on the campaign trail.

Both China and Canada issued swift responses, each calling their trade relationships with the United States "mutually beneficial."

"No one will win a trade war," Liu Pengyu, a spokesman for China's embassy in the United States, told AFP by email, defending Beijing's efforts to curb fentanyl smuggling.

"China believes that China-US economic and trade cooperation is mutually beneficial in nature," Liu added.

Canada said it was "essential" to US energy supplies, and insisted the relationship benefits American workers.

"We will of course continue to discuss these issues with the incoming administration," said the statement from Deputy Prime Minister Chrystia Freeland.

Trump's first term in the White House was marked by an aggressive and protectionist trade agenda that also targeted China, Mexico and Canada, as well as Europe.

While in the White House, Trump launched an all-out trade war with China, imposing significant tariffs on hundreds of billions of dollars of Chinese goods.

At the time he cited unfair trade practices, intellectual property theft, and the trade deficit as justifications.

China responded with retaliatory tariffs on American products, particularly affecting U.S. farmers.

The U.S., Mexico and Canada are tied to a three-decade-old free trade agreement, now called the USMCA, that was renegotiated under Trump after he complained that the US businesses, especially automakers, were losing out.

"Mexico and Canada remain heavily dependent on the US market so their ability to walk away from President-elect Trump's threats remains limited," Wendy Cutler, vice president at the Asia Society Policy Institute, and former US trade official, told AFP.

By citing the fentanyl crisis and illegal immigration, Trump appeared to be using national security concerns as a means to break that deal, something that is usually allowed under the rules set by the World Trade Organization or in trade deals.

But most countries and the WTO treat national security exceptions as something to be used sparingly, not as a routine tool of trade policy.

Trump in 2018 cited national security justifications to impose tariffs on steel and aluminum imports that targeted close allies like Canada, Mexico, and the European Union.

This led to retaliatory measures from the trading partners.

- 'Bet on China tariffs' -

Many economists have warned that tariffs would hurt growth and push up inflation, since they are primarily paid by importers bringing the goods into the US, who often pass those costs on to consumers.

But those in Trump's inner circle have insisted that the tariffs are a useful bargaining chip for the US to push its trading partners to agree to more favorable terms, and to bring back manufacturing jobs from overseas.

Trump has said he will put his commerce secretary designate Howard Lutnick, a China hawk, in charge of trade policy.

Lutnick has expressed support for a tariff level of 60 percent on Chinese goods alongside a 10 percent tariff on all other imports.

William Reinsch, senior adviser at the Center for Strategic and International Studies, said that that move was classic Trump: "threaten, and then negotiate."

"In terms of what might actually happen, I'd bet on some China tariffs going into effect. That's legally easier and politically more palatable," he said.

"On Canada and Mexico there was going to be a renegotiation of their trade deal (the USMCA) anyway in 2026."

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Donald Trump on Saturday issued a vague and ominous threat to Afghanistan.

The president over the weekend took to his own social media site, Truth Social, to target the Middle Eastern nation. Specifically, Trump referenced his prior desire to "get back" Bagram Airfield after it was overtaken by the Taliban.

"If Afghanistan doesn’t give Bagram Airbase back to those that built it, the United States of America, BAD THINGS ARE GOING TO HAPPEN!!! President DJT," Trump wrote over the weekend.

Read the original Truth Social post right here.

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U.S. Rep. Alexandria Ocasio-Cortez (D-NY) had a stinging response for Donald Trump's border czar following a report that Tom Homan had accepted a bribe from undercover FBI agents.

Raw Story reported on Saturday about a MSNBC exclusive in which the outlet claimed that Homan had previously been investigated for accepting $50,000 from undercover FBI agents.

"In an undercover operation last year, the FBI recorded Tom Homan, now the White House border czar, accepting $50,000 in cash after indicating he could help the agents — who were posing as business executives — win government contracts in a second Trump administration, according to multiple people familiar with the probe and internal documents reviewed by MSNBC," the outlet reported. "The FBI and the Justice Department planned to wait to see whether Homan would deliver on his alleged promise once he became the nation’s top immigration official. But the case indefinitely stalled soon after Donald Trump became president again in January, according to six sources familiar with the matter. In recent weeks, Trump appointees officially closed the investigation, after FBI Director Kash Patel requested a status update on the case, two of the people said."

Ocasio-Cortez had a brief response over the weekend. She tagged Homan on X and wrote, "Who’s the illegal now?"

Rep. Nancy Mace (R-SC) on Saturday accused fellow Republican lawmaker, Rep. Cory Mills (R-FL), of "greatly exaggerating his military service."

Mace recently lashed out at Mills and accused him of privately threatening her, following the failure of her resolution to censure Rep. Ilhan Omar (D-MN) earlier this week.

Over the weekend, Mace doubled down on her crusade, going back to 2020 when Mills publicly hit back at a critic, saying, "You clearly were not a JSOC/SOF member or you would realize our service is premised on our morals and values."

To that statement, Mace wrote, "Do morals and values mean either lying or greatly exaggerating your military service?"

In a separate post, Mace asked, "Did you know Cory Mills was 'allegedly' married in an al Qaeda mosque by a radical Muslim imam who was an unindicted co-conspirator in the World Trade Center bombings?"

She then added, "The Muslim officiant was also a Hamas fundraiser. Is this why he voted to protect Ilhan Omar? Cory’s wife is allegedly Muslim. Is he Muslim too? I understand the only way to get married in a mosque is to be 100% Muslim. He also has an international arms dealing company and we made this guy a chairman of an intel committee on Foreign Affairs?"

"What in the world…" Mace concluded on Saturday.

Mills didn't address the allegations at the time of writing.

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