In a recent statement at the White House, U.S. President Donald Trump announced intentions to impose tariffs on the European Union and mentioned ongoing discussions about a 10% duty on Chinese imports. This move is in response to the trafficking of fentanyl from China to the U.S. through Mexico and Canada. Despite initial delays in implementing tariffs upon taking office, Trump's recent remarks highlight a firm deadline of Feb. 1 for imposing a 25% tariff on Canada and Mexico, alongside potential duties on China and the EU, due to trade surpluses these regions hold with the United States.
Trump's rationale for these tariffs includes the need for fairness in trade relations and the reduction of illegal migrant trafficking and fentanyl flow into the U.S. China has expressed willingness to engage in dialogue to manage differences and expand cooperation. The Chinese foreign ministry emphasized the belief that trade wars yield no winners and affirmed China's commitment to protecting its national interests.
White House trade adviser Peter Navarro linked the tariff threats to the need to curb the entry of illegal migrants and drugs into the U.S., highlighting the daily American fatalities due to fentanyl overdoses as a key concern. In parallel, Trump has initiated a comprehensive review of trade practices, focusing on U.S. trade deficits, unfair trade practices, and currency manipulation, with a report due by April 1. This review aims to establish a legal foundation for potential tariffs and duties on goods, particularly from China.
In response to Trump's tariff threats, Mexico and Canada have adopted a conciliatory stance. Mexico's President Claudia Sheinbaum emphasized the country's sovereignty and the non-negotiability of the U.S.-Mexico-Canada trade agreement until 2026. Concerns arise among U.S. corn farmers regarding the impact of tariffs and retaliatory duties on trade with Mexico and Canada, their top export markets for corn and corn-derived ethanol, respectively.
Source: Reuters