President-elect Donald Trump has stirred strong reactions from China and Mexico after threatening to launch a trade war with the United States’ top economic partners upon taking office on January 20, 2025. Trump’s provocative social media posts on Monday outlined plans to impose hefty tariffs on imports from Mexico, Canada, and China, linking these economic penalties to his demands for action on illegal immigration and drug smuggling, particularly the fentanyl crisis.
In response, Chinese officials warned that “no one will win a trade war,” emphasizing the mutual benefits of China-U.S. trade relations. Mexican President Claudia Sheinbaum rebuked Trump’s approach as “unacceptable,” asserting that tariffs would neither resolve migration issues nor curb U.S. drug consumption. She also highlighted the demand for narcotics in the U.S. as a key driver of the Mexican drug trade and pointed to the prevalence of American-made weapons in the hands of Mexican criminals.
Canada’s Prime Minister Justin Trudeau reportedly discussed the matter with Trump in a “productive” phone call, but details were not disclosed. Meanwhile, global markets reacted nervously to Trump’s tariff threats, with analysts noting increased volatility.
Trump, who governed with a protectionist trade agenda during his first presidency, stated he would impose a 25% tariff on all imports from Mexico and Canada until illegal immigration and drug trafficking were halted. He also announced a 10% tariff on Chinese goods, criticizing Beijing for allegedly failing to execute fentanyl smugglers. Trump described these measures as critical to addressing the “invasion” of foreign crime and drugs in the U.S.
The president-elect named Jamieson Greer as his trade representative and Kevin Hassett as his chief economic advisor, both of whom served in his previous administration. Howard Lutnick, a vocal critic of China, was also tapped to oversee trade policy.
Critics, including economists and trade experts, warn that such tariffs could harm U.S. economic growth and exacerbate inflation. During Trump’s first term, similar policies led to a trade war with China, with reciprocal tariffs impacting American farmers and consumers. Analysts are now questioning whether Trump’s current threats are mere negotiating tactics or a prelude to significant trade upheavals.