United States: Donald Trump announces increases in customs duties

Donald Trump confirmed Monday that his first economic measures after his inauguration in January would be to increase customs duties on products coming from China but also from Canada and Mexico, decisions that he justifies by the crises linked to opiates and immigration.

“On January 20, as one of my many first executive orders, I will sign all necessary documents to impose 25% tariffs on ALL products entering the United States on Mexico and Canada,” the president wrote elected in a publication on his Truth Social network.

“This tax will remain in effect until drugs, especially fentanyl, and all illegal immigrants stop this invasion of our country!”, he adds.

National security reasons

In a separate post, he announced an increase in customs taxes of 10%, which is added to those already existing and to those additional that he could decide, on “all the numerous products arriving from China to the United States”.

He explains that he often raised the problem of the influx of drugs, notably fentanyl, one of the main culprits of the opioid crisis in the United States, with Chinese officials who promised to punish him severely, “to the point of punishment.” of death”, the “traffickers”. “But they never got to the end of things,” he regrets.

National security reasons can be invoked to deviate from the rules set by the World Trade Organization (WTO) but countries generally refrain from using this exception as a regular tool of trade policy.

Trade wars

The increase in customs duties, which he often described as his “favorite expression” during his campaign, is one of the keys to the future economic policy of the president-elect, who is not afraid of relaunching trade wars, notably with China, started during his first mandate.

At the time, he justified this policy by the trade deficit between the two countries and Chinese commercial practices that he considered unfair, also accusing Beijing of theft of intellectual property. China responded with customs duties with harmful consequences for American farmers in particular.

Joe Biden’s administration had maintained certain customs duties on Chinese products and had imposed new ones targeting certain products.

Warning

In the evening, Justin Trudeau’s government estimated that the relationship between the two countries was “balanced and mutually beneficial, especially for American workers.” Before recalling as a warning that Canada was “essential for the energy supply” of the United States.

In the country, where 75% of exports go to the United States, the news sent a shock wave. Quebec Prime Minister François Legault said this announcement represented “a huge risk” for the Canadian economy. His British Columbia counterpart, David Eby, said “Ottawa must respond firmly.”

Mexico “has no reason for concern,” President Claudia Sheinbaum tried to reassure the day after the American election. The three countries have been linked for thirty years by a free trade agreement, renegotiated under pressure from Donald Trump during his first term.

Concerning China, Donald Trump has promised customs duties of up to 60% for certain products, or even 200% on imports of vehicles assembled in Mexico. He also wants to reintroduce customs duties of 10 to 20% on all products entering the United States and the European Union has already said it is “ready to react” in the event of new trade tensions. Economists warn of the inflationary potential of such an increase in customs duties.

“Latest news”

Want to stay on top of the news? “24 Heures” offers you two appointments per day, directly in your email box. So you don’t miss anything that’s happening in your Canton, in Switzerland or around the world.

Other newsletters

Log in

AFP

Did you find an error? Please report it to us.

6 comments