Officials from Mexico, Canada, and China and major industry groups warned that U.S. President-elect Donald Trump’s threat of hefty tariffs on goods would harm the economies of all involved, cause inflation to spike and damage job markets.
Trump’s pledge announced on Monday roiled currency, bond, and equity markets on Tuesday, as the three countries are the United States’ largest trading partners. Mexico and Canada are particularly intertwined in U.S. auto production and energy output thanks to decades of trade agreements between the North American neighbors.
Trump’s plan to impose a 25% tariff on Canadian and Mexican imports on his first day in office does not exempt crude oil as industry executives had hoped, two sources familiar with the plan told Reuters on Tuesday.
Leaders and other top officials warned a trade war could erupt and economies be damaged and sought talks with Trump after the surprise announcement, which includes an extra 10% levy on Chinese goods – until the three countries clamp down on the flow of illicit drugs and migrant border crossings.
With information from Reuters
TYT Newsroom
