What do Canada, Mexico, and China have in common? These are the three largest trading partners of the United States, and the incoming administration is threatening to impose new tariffs. Let’s take a look at the potential implications.
Rob Schmitz, host:
President-elect Donald Trump’s threats to impose new tariffs on two of his closest neighbors and China have sparked anger and diplomacy among countries involved. Leaders of China, Mexico and Canada say that if the incoming Trump administration imposes additional taxes in the range of 10% on China and 25% on Canada and Mexico, consumers, not industry, will bear the burden. It says that it will be. Both here and abroad.
We will soon hear from Mexico’s ambassador to the United States about how President Trump’s threats were received on the ground. But first, there will be reactions from Canada and China. NPR’s John Ruwich covers China’s response, but first I’d like to talk to Jackie Northam about how Canadian authorities are responding.
JACKIE NORTHAM, BYLINE: In Canada, Ontario Premier Doug Ford perhaps best summed up the national reaction, saying that President Trump’s threat to impose a 25% tariff on all Canadian products is a family member. He said it felt like he had been stabbed in the heart. The two countries not only share the longest undefended border; The two countries are also each other’s largest trading partners, with nearly $3 billion in goods and services crossing the border every day. There are now concerns that Canada may fall into a deep recession.
Prime Minister Justin Trudeau met with President Trump shortly after the president threatened to impose tariffs. Trudeau said they discussed the challenges and how to move forward.
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Prime Minister Justin Trudeau: We know it will take some effort to build this relationship, and we intend to do so. One thing that really matters is that we all put aside partisanship and come together for a Team Canada approach. There is work to be done, but we know how to do it.
Northam: If Prime Minister Trudeau’s political opponents feel like it. In Canada, there were calls for retaliation. If President Trump imposes tariffs, it could have a boomerang effect, raising costs for the U.S. auto sector, steel and aluminum, and gasoline prices. Canada supplies more than half of the United States’ crude oil imports. Prime Minister Trudeau met with premiers tonight to discuss how to address threats from our closest neighbors. Jackie Northam, NPR News.
JOHN RUWICH, BYLINE: During his campaign, President Trump threatened to impose tariffs of more than 60% on all Chinese goods. His latest proposal is, quote, “another 10%.” And there’s a twist to it. It’s not about imbalances or unfair trade practices. He says this is punishment for the Chinese government’s failure to follow through on its promise to curb the flow of the synthetic opioid fentanyl. China is the main source of precursor chemicals used by cartels to make the drug.
Ambiguity surrounding the tariffs caused a Chinese government spokesperson to rush from Beijing to Washington. China has the world’s strictest drug control policies and is the only country to classify all fentanyl-related substances as regulated, China’s Ministry of Foreign Affairs said in a written statement. The statement said there had been “significant achievements” in counter-drug cooperation between China and the United States.
The statement said the Chinese government intends to continue cooperation based on equality, mutual benefit and mutual respect, and the United States should cherish its goodwill. During his first term as President, Trump imposed tariffs of up to 50% on more than $300 billion worth of Chinese goods. The Chinese government responded with its own tariffs on U.S. products. Chinese Embassy Spokesperson Liu Pengyu warned that no one wins in a trade or tariff war.
John Ruwitch, NPR News.
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