Trump identified the flow of fentanyl and significant trade deficits as reasons for this decision. He emphasized that the 25% tariff could be the minimum, with the possibility of increasing tariffs over time.
Trump also stated that he would continue implementing tariffs on China. Journalists noted that he did not specify the rate, although he previously mentioned it would be 10%. The U.S. leader claimed that Beijing had not fulfilled its promises to halt the flow of fentanyl and chemicals used to produce these deadly drugs into the U.S. He instructed his administration to investigate whether China had met its commitments under the trade agreement made during his first presidential term.
According to media reports, Trump’s actions were anticipated by both markets and global businessmen and politicians who closely monitored his words and actions, trying to determine whether the U.S. president would follow through on his tariff threats or use them as a starting point for trade negotiations.
The continuation of tariffs against Canada and Mexico, which border the U.S. and are major trading partners and export markets, could have serious economic implications, shake up the markets, and potentially impact the trade war, media outlets noted.
As reported by BBC, in 2022, China became the largest supplier of goods to the U.S., holding a share of 17.7% ($551 billion), followed by Canada (14%, $438 billion) and Mexico (13.5%, $421 billion). Together, these three countries accounted for about half of U.S. imports. Additionally, in 2022, Mexico (76.8% of exports to the U.S.) and Canada (74.5%) were the leading exporters to the U.S.