TRADE
U.S. vows tariffs on Canada, Mexico and China
November 28, 2024 - President-elect Donald Trump has threatened to impose sweeping a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders.
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The threat of U.S. tariffs on its three biggest trading partners could spark a global trade war, stoke inflation at home and appears to violate the terms of the U.S. Canada Mexico Agreement free trade deal signed into law by Trump in his first term.
The USCMA is up for renegotiation in 2026, when a "sunset" provision will allow withdrawal from the pact, and the threat of tariffs is likely a bid to prompt early negotiation and better terms for the U.S.