Trump Denies Using Tariffs as Leverage in USMCA Negotiations

US President Donald Trump denied using the threat of tariffs on Mexico and Canada to pressure them into renegotiating the USMCA. “No, I did not. I am just putting America First,” he stated.

Trump has threatened to impose a 25% tariff on Mexico and Canada starting Feb. 1, citing both governments’ failure to prevent the entry of irregular migrants and drugs. "Both countries have allowed millions and millions of people to enter a country where they should not be. They could have stopped them, but they did not," Trump declared.

Clark Packard, Trade Policy Expert, Cato Institute, previously called the proposed 25% tariffs a “serious mistake,” warning that they would violate USMCA terms and harm US trade relationships. "It would unquestionably breach all US trade obligations. Free trade agreements commit to zero tariffs, so this would clearly violate USMCA and other global trade agreements,” said Jeffrey Schott, Senior Fellow, Peterson Institute for International Economics.

Mexican President Claudia Sheinbaum urged calm in response to Trump’s measures, which, in addition to tariffs, included a national emergency at the US-Mexico border, efforts to reinstate the Remain in Mexico program, designating cartels as terrorist organizations, and eliminating the possibility of scheduling appointments through the mobile app CBP One. She emphasized that while the US government is respected, Mexico must also be respected by its partners. “With Donald Trump, we aim to cooperate, not subordinate.”

Experts have underscored that the situation has grown increasingly complex, with the potential to escalate into a trade war. Both Mexico and Canada have issued warnings that they could implement reciprocal tariffs in response to the measures being taken by President Trump, which would significantly strain trade relations between the three countries.