Mexico and Canada try to reason with the US President-elect on his 25 per cent tariff move as he assumes office, saying this plan could destabilize the world economy
Washington: US President-elect Donald Trump's proposal to slap tariffs on Mexico, Canada, and China has jolted world politics, with leaders trying to reason with him about the repercussions that can impact economic stability globally.
Trump has reiterated his threat to impose a 25 per cent tariff on goods from Mexico and Canada, two of his main trading partners, unless they resolve such issues as immigration or drug trafficking. He has threatened even stricter measures against China.
Mexican President Claudia Sheinbaum warned Trump that "neither threats nor tariffs will solve the issue of migration or drug consumption”. Sheinbaum said that her country would retaliate with tariffs on US goods if necessary. She said the move could kill 400,000 US jobs and drive up prices for US consumers.
Mexico could retaliate with tariffs of its own after US President-elect Trump threatened to impose tariffs on Mexican goods if the country doesn't stop the flow of drugs and migrants across the border. Sheinbaum said she was willing to engage in talks on the issues, but said drugs were a US problem.
On the other hand, Canadian Prime Minister Justin Trudeau said he had a "good call" with Trump, and they talked about some of the challenges that they can work on together. During the call, Trudeau reportedly pointed out that the number of migrants crossing the Canadian border was much smaller compared to the US-Mexico border.
The tariff proposal made by Trump has been met with concern from Canadian officials. Doug Ford, the premier of the province of Ontario, described it as "devastating". Ford said the proposed tariff would be "devastating to workers and jobs in both Canada and the US”. He called on the government to "take the situation at our border seriously”. Canada's Industry Minister Francois Philippe Champagne said the tariffs will have a serious effect on the US economy, particularly the price of energy for Americans.
Meanwhile, Chinese authorities are contending with a weakening yuan as global investment banks forecast the currency to hit record lows, in anticipation of Trump following through with his tariff threats. A spokesperson for the Chinese embassy in Washington told the BBC, "the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality".
"China believes that China-US economic and trade cooperation is mutually beneficial in nature. No one will win a trade war or a tariff war," the spokesperson was quoted as saying. Trump has also said he will end China's most-favored-nation trading status with the US - the most advantageous terms Washington offers on tariffs and other restrictions.
