Trump Sticks to Tariff Plan, May Target China

US President Donald Trump remains firm in his plan to impose tariffs on Canada and Mexico on Feb. 1, White House Press Secretary Karoline Leavitt confirmed. She also stated that Trump is still considering additional tariffs on China, which could take effect on the same day.

During his campaign, Trump proposed a sweeping overhaul of trade policies, including a 20% tax on imports from all countries, a 25% tariff on goods from Mexico and Canada, and a 60% tariff on Chinese imports. He has justified targeting Mexico and Canada by citing their alleged failure to curb illegal migration and drug trafficking.

Trade experts suggest Trump may be using tariff threats or even the possibility of withdrawing from the USMCA to extract concessions from Mexico and Canada. "He has done this before. He secured USMCA by threatening to scrap NAFTA. He could apply a similar strategy, using tariffs and the six-year review clause as leverage for concessions," said Jeffrey Schott, Senior Fellow,  Peterson Institute for International Economics. However, Schott warned that this time, the situation is more complex, as both Mexico and Canada have threatened countermeasures, potentially escalating into a regional trade war. 

Schott emphasized that the proposed tariffs would constitute a clear violation of US trade commitments. “Free trade agreements are built on the principle of zero tariffs. Imposing new duties would undeniably breach USMCA and other international trade agreements,” he stated.

Amid growing trade tensions, Mexican Ambassador to the United States Esteban Moctezuma and his EU counterpart in Mexico, Francisco André, stressed the need for stable and cooperative bilateral relations. "Foreign policy should not be driven by threats but by collaboration aimed at achieving mutual benefit and shared prosperity," André stated. Moctezuma echoed this sentiment, emphasizing the need for national unity in defending Mexico’s interests and citizens.