Trade Cases
Trump threatens Canada, Mexico with 25% tariffs, China another 10%
Written by Michael Cowden
November 25, 2024
President-elect Donald Trump threatened on social media Monday evening to impose tariffs of 25% on all US imports from Canada and Mexico.
Trump also said he would impose a 10% tariff on imports from China. He noted that tariffs would come on top of existing trade measures.
Trump said he would implement the tariffs with executive orders on his first day in office – Inauguration Day on Jan. 20.
The president-elect showed an affinity for the same round numbers in his first term. He imposed Section 232 “national security” tariffs of 25% on imported steel and 10% on imported aluminum in March 2018.
25% for Canada and Mexico
“I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump said in a post on Truth Social. He said he would do so in response to migrants and crime “pouring through Mexico and Canada.”
“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem,” the president-elect said.
Recall that Trump in 2018 imposed Section 232 tariffs of 25% on steel imported from US adversaries, such as Russia and China, as well as neighbors and allies, such as Canada and Mexico.
The tariffs on Canada and Mexico, two of the United States’ closest trading partners, were partly responsible for US hot-rolled (HR) coil prices surging to $915 per short ton (st) in July 2018, according to SMU’s pricing archives.
That gain was stunning at the time and marked the highest prices for HR since they overheated ahead of the financial crisis in 2008. Prices fell back to earth in 2019 after the tariff was removed from Canada and Mexico.
A tariff on all imports from Canada and Mexico, if implemented, could prove far more disruptive to closely linked North American supply chains – especially in sectors such as auto manufacturing.
10% for China
Trump also cited drugs as the reason for the proposed new 10% tariff on all imports from China.
“I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail,” he wrote on Truth Social.
“Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America,” Trump said.
Section 232 had little impact on steel imported from China. That’s because steel from China already faced an array of prohibitively high anti-dumping (AD) and countervailing (CVD) orders. Additional tariffs on downstream goods, however, could prove more disruptive.
Michael Cowden
Read more from Michael CowdenLatest in Trade Cases
US and Canada expect positive outcomes from tariff negotiations
Canadian Prime Minister Mark Carney and US President Donald Trump told reporters at the White House on Tuesday that they’ll be formulating a trade deal that works for both nations.
Leibowitz: When the shutdown should end
There is no doubt that the current government shutdown reflects the vast divisions between the extremes of American politics, society, and even geography. Almost all Americans agree that government is necessary, but voters disagree...
Price: The U.S. Steel shutdown that wasn’t and a call to stop ‘valuation cheating’
How can the U.S. government block U.S. Steel’s Granite City rolling mill closure without harming other American steelmakers? Reducing imports should be the first step. Foreign producers continue to aggressively target the U.S. market, especially now as they find themselves displaced by Chinese exports.
US steel industry applauds ITC final determination in coated trade case
Domestic mills praised the US International Trade Commission’s (ITC's) final determination that imports of corrosion-resistant (CORE) steel from 10 countries pose a threat to them.
ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.