President-elect Donald Trump has laid out his vision for blanket tariffs on Canada, Mexico, and China. Trump announced on his social media platform that one of his first executive orders will be to slap an immediate 25 percent tariff on all Canadian and Mexican products entering the U.S. Trump’s rationale is that such harsh economic sanctions will force the U.S.’s two neighboring countries to curb the flow of illegal drugs and migrants across America’s northern and southern borders.
Shortly after the president-elect shared his blanket tariff plans, Canadian Prime Minister Justin Trudeau said he contacted Donald Trump directly.
Mexican President Claudia Sheinbaum stated that her country could respond to U.S.-imposed tariffs with sanctions of its own but warned the economic consequences would be dire for all concerned. The Mexican president went on to say, “The main exporters from Mexico to the U.S. are factories owned by General Motors, Stellantis, and Ford Motor Company. So why apply tariffs that put them at risk?”
Max Cameron, a political science professor at the University of British Columbia, echoed that concern, saying that most of the daily trade volume within North America is through multinational companies that have facilities located in the U.S., Mexico, and Canada.
On the other hand, David Frum, a Canadian-born author and political commentator who used to be a speechwriter for George W. Bush, said free trade between tightly integrated neighbors presents a winner-takes-all scenario for Donald Trump.
Of course, only time will tell how these tariffs will end up impacting the U.S.’s relationships with Canada and Mexico in the long run.
