WASHINGTON, D.C. – President-Elect Donald Trump said he’s going to make good on a campaign promise: by imposing tariffs on three major trading partners. Some experts worry this could disrupt the global supply chain and US consumers.
In a social media post on Monday, Trump said on his first day back in office, he will impose a new 25 percent tariff on all products coming from Canada and Mexico and a new 10 percent tariff on products from China. He said it’s a response to the fentanyl crisis and illegal immigration.
A tariff is a tax on imported goods. Some experts say it could impact auto manufacturers, the dairy industry, building supplies and hike up prices and increase shortages for US consumers.
China, Canada and Mexico are some of our largest trade partners. Experts warn new tariffs could impact economic and diplomatic relationships. A spokesperson with the Chinese Embassy in Washington said in part: “China-US economic trade cooperation is mutually beneficial in nature. No one will win a trade war or a #tariff war.”
Canada’s Prime Minister Justin Trudeau spoke with Trump after his announcement. Trudeau said they talked about the challenges they can work on together.
“It was a good call,” said Trudeau. “It’s- this is something that we can do, laying out the facts and moving forward in constructive ways. This is a relationship that we know takes a certain amount of working on, and that’s what we’ll do.”
Some said we will have to see if Trump follows through on this.
“I think this is meant to be an opening position,” said Ian Bremmer, President and Founder of Eurasia Group & GZERO Media. “The United States is in a much more powerful position vis a vis because of its allies around the world and vis a vis because of China. China’s economy is in the worst shape since the 90s, maybe since the 70s. They’re deeply concerned what a tariff from the United States would mean for their economy this time around.”