Trump cited the flow of fentanyl and significant trade deficits as reasons for this decision. He emphasized that the 25% tariff could be just the starting point, with rates potentially increasing over time.
Trump also stated that he would continue to impose tariffs on China. As noted by journalists, he did not specify the amount of the fee, although he had previously mentioned it would be 10%. The U.S. leader claimed that Beijing had not fulfilled its promises to stop 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 obligations under the trade agreement made during his first presidential term.
According to the media, Trump’s actions were anticipated by both markets and global business leaders and politicians, who closely monitored his words and actions 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 are neighboring countries to the U.S. and major trading partners and export markets, could have serious economic ramifications, shake up markets, and potentially impact the trade war, the media highlights.
As reported by BBC, in 2022, China became the largest supplier of goods to the U.S., accounting for 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. In 2022, Mexico (76.8% of exports to the U.S.) and Canada (74.5%) were also the leading exporters to the U.S.