Why Trump Vows to Enact New Tariffs on China, Canada, and Mexico

U.S. President-elect Donald Trump announced plans to impose higher tariffs on China, Canada, and Mexico.

On Monday, Trump stated on the Truth social media platform that, starting from his first day in office, he will impose an additional 10% tariff on imports from China and a 25% tariff on goods from Mexico and Canada. This move is aimed at retaliating against these countries for failing to effectively prevent the flow of fentanyl and other drugs into the United States.

Fentanyl, a potent synthetic opioid, is primarily used for surgical procedures or the treatment of severe pain. It is approximately 50 times more potent than heroin but is relatively inexpensive, making it a common additive in illegal drug mixtures.

According to the Centers for Disease Control and Prevention (CDC), about 68% of U.S. drug overdose deaths in 2022 involved illegally manufactured fentanyl, with the overdose death rate linked to the drug being 24 times higher than in 2013.

The U.S. government has long accused China of being the primary source of fentanyl entering the country. A report from the U.S. Congressional Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party estimated that approximately 97% of illicit fentanyl originates from China. The report also highlighted that the Chinese government holds stakes in some of these illicit pharmaceutical companies and provides them with subsidies and tax exemptions.

Trump emphasized that these countries have the capability to address the fentanyl issue, and the tariff policies will remain in place until the problem is fully resolved. However, Trump’s recent comments may be closely tied to the policy orientation of newly appointed Treasury Secretary Scott Bessent.

While Bessent supports Trump’s protectionist trade policies, he advocates a more gradual approach, using high tariffs as a negotiating tool. The 25% tariff on goods from Canada and Mexico is likely intended to accelerate the renegotiation of the United States-Mexico-Canada Agreement (USMCA).

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(Photo Credit : Donald Trump’s Facebook )