Trump, who begins his second term as US President on January 20, linked the announced tariff increases with the demand for the three countries to stop drug smuggling and illegal migration into the US. The tariffs should remain in effect until the “invasion” of drugs, particularly fentanyl, and “illegal immigrants” into the United States is stopped. The affected states should use their power to stop this – until this happens they should “pay a very high price”.
If the tariffs announced by Trump take effect, it would have an impact on the global economy, increase tensions with China and affect relations with its direct neighbors Canada and Mexico. With his posts on Truth Social, the right-wing populist showed that he is aiming for the same style of government in his second term as in his first time in the White House (2017-2021).
At that time, Trump regularly shocked trading partners and long-time allies in the European Union with nightly announcements on online networks about changes in US policy. The Republican also often used the economic power of the United States as leverage to achieve goals that have nothing to do with trade policy. This includes the fight against crime and illegal migration, which he repeatedly mentioned during the election campaign.
China in particular accused Trump of doing nothing to combat drug smuggling, especially fentanyl. He discussed the issue with Chinese government representatives several times without success. A spokesman for the Chinese embassy in Washington warned that no one would win “a trade war.” “China believes that China-US economic and trade cooperation is mutually beneficial,” he said.
Fentanyl is a strong painkiller that is used, among other things, by cancer patients, but is also traded illegally. The synthetic opioid is 50 times more potent than heroin. In the United States, approximately 75,000 people die from a fentanyl overdose every year. With chemical substances manufactured primarily in China, the opioid is often produced in Mexico and smuggled from there to the USA.
Mexican President Claudia Sheinbaum said threats and tariffs would not stop migration or drug use in the United States. “Cooperation and mutual understanding” are needed to address these problems. A trade war would only “endanger joint companies,” said Sheinbaum, referring to the car manufacturers Ford and General Motors, which produce in Mexico.
Canada’s Prime Minister Justin Trudeau simply said that he had a “good” phone call with the future US president after Trump’s tariff announcement. They talked about how upcoming challenges could be overcome together.
Tariffs are a central part of Trump’s economic agenda. US law allows the president to impose tariffs on US imports by decree. The Republican wants to reduce the US trade deficit with higher tariffs and, in doing so, target all countries that have been “ripping us off for years,” as he says.
Experts warn that such policies could slow US economic growth and fuel inflation. The higher costs of imported goods would often be passed on to consumers.
The USA is the most important trading partner for Mexico and Canada. There has been a free trade agreement between the three countries for 30 years. Trump canceled the so-called NAFTA in his first term because it disadvantaged US companies. It was then renegotiated and replaced by the USMCA.
