Why are some people surprised that President Trump is serious about imposing tariffs?
President-elect Donald Trump said on Truth Social that he would impose it on the next president. Full implementation of new tariffs on Mexico and Canada Through an executive order he will sign on January 20, the day he is scheduled to take the presidential oath.
Trump's post surprised many, which is surprising in itself. Trump has made it very clear that he intends to use Tariffs as a means of pursuing U.S. geopolitical interests. He doesn't see tariffs as simply a “protectionist” policy to protect America's vital industries. Rather, it sees tariffs and access to the U.S. market as leverage to win cooperation from trading partners and economic rivals.
The full post is below:
As we all know, thousands of people are streaming into Mexico and Canada, and crime and drugs are reaching levels never seen before. Now, a caravan of thousands of people from Mexico is trying to cross the now open border, and it seems like they can't stop in their quest. On January 20th, in one of my first of many executive orders, I ordered Mexico and Canada to impose a necessary 25% tariff on all products imported into the United States and their ridiculous border openings. I intend to sign all documents. These tariffs will remain in effect until we stop drugs, especially fentanyl, and all illegal aliens from entering our country. Both Mexico and Canada have the absolute right and power to easily resolve this long-simmering problem. We hereby demand that they use this power, and until they do, it is time for them to pay a very dear price!
of wall street journal He called this “the clearest indication since his election victory that he intends to follow through on his policies.” tough campaign rhetoric That helped propel him to the White House. It's hard to imagine why that needed to be revealed, but the immediate reaction to President Trump's Truth social post made it clear that sending that signal was indeed necessary. .
Tariff threat is President Trump's first ploy
Truth Social's announcement didn't just threaten tariffs. It also laid out a path forward for exiting the tariffs. If Mexico and Canada cooperate with the U.S. government under the leadership of President Trump; Securing our borders from fentanyl and illegal immigrationthey will maintain their current access to the US market.
This is an example of what Treasury Secretary candidate Scott Bessent described as “escalation to de-escalation.” it is President Trump takes new measures in three-party negotiations Regarding trade, borders, and drug policy. The fact that this policy announcement was made so quickly, two months before Trump's inauguration, suggests that President Trump is offering counterproposals to Mexico and Canada and reforming his own policies in line with the goals of the incoming administration. This means giving yourself enough time to do so.
Trump's demands are not that difficult. Neither Mexico nor Canada has a strong self-interest in resisting U.S. border controls or facilitating the fentanyl trade. Both companies have a very strong self-interest in maintaining access to U.S. consumers. CNBC's Sarah Eisen pointed out, 77 percent of Canada's exports and 83 percent of Mexico's exports go to the United States.. Mexico's exports to the United States amount to nearly a quarter of its gross domestic product.
Initial reactions to President Trump's message from Mexican President Claudia Sheinbaum are seen as follows: threat of retaliation If the United States imposes tariffs.
“The phenomenon of immigration and drug consumption in the United States will not be addressed with threats and tariffs.” sheinbaum That's what he wrote in a letter to Trump read at his daily press conference Tuesday. “One tariff is triggered in response to another, and this repeats until it endangers the shared enterprise.”
This is probably Attitude toward audiences in Mexico Rather than a sign that Mexico will not negotiate with the Trump administration. But it may also test President Trump's resolve. President Trump may need to raise tariffs to show Mr. Sheinbaum he means business.
Ultimately, however, he expects Mexico and Canada to agree on terms that would allow them to avoid around 25% tariffs. of Cost otherwise The burden on their economy would be too high.
