Joseph Isangura
President Joe Biden expressed concern over President-elect Donald Trump’s renewed threat to impose 25% tariffs on imports from Canada and Mexico.
Speaking on Thanksgiving, Biden called the move “counterproductive,” urging Trump to reconsider his approach. The proposed tariffs, aimed at forcing policy changes on issues like illegal immigration and drug trafficking, have already drawn sharp reactions from officials in both neighboring countries and sparked economic uncertainties.
Trump, known for his hardline stance on trade during his first term, signaled this escalation in a series of social media posts just days before the holiday. He noted that, if implemented, these tariffs would be one of his first major policy actions upon returning to office. The move has raised fears of a repeat of 2019 when similar tariff threats caused market jitters and strained U.S.-Mexico relations
Mexican President Claudia Sheinbaum responded swiftly, warning of potential retaliation and emphasizing that her administration had already been tackling the flow of drugs and migration. She also pointed out ongoing joint efforts with the U.S. to curb illegal activities, including the flow of precursor chemicals used in drug production
In Canada, officials have reiterated their commitment to cooperation and dialogue but remain wary of the potential economic impact. Analysts warn that renewed trade restrictions could undermine the USMCA, which succeeded NAFTA and was touted as a significant accomplishment of Trump’s first term
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Economists are also concerned about the broader implications for the U.S. economy. While some market analysts view Trump’s tariff rhetoric as an initial bargaining chip, there is apprehension over the long-term effects on industries reliant on cross-border trade
The unfolding situation is a reminder of the unpredictability of trade policy under the former president’s leadership style, with potential consequences that could reverberate far beyond the region.
