The President-elect of the United States, has sparked a heated reaction from China and Mexico after threatening to launch a trade war against the country’s top three economic partners.
Trump made the threat on social media, announcing hefty import tariffs against Canada, Mexico, and China if they fail to stop illegal immigration and drug smuggling into the US.
China responded swiftly, stating that “no one will win a trade war,” while Mexican President Claudia Sheinbaum warned that “for every tariff, there will be a response in kind.”
Canada’s Prime Minister Justin Trudeau also had a “productive” discussion with Trump, although details of the conversation were not disclosed.
The proposed tariffs have sent shockwaves through the global economy, with nervous stock markets experiencing “volatile trading conditions.” Analysts warn that such tariffs could disrupt the global economy, deepen tensions with China, and strain relations with the US’s largest neighbors.
Trump’s threat is seen as a return to his governing style during his first presidency, marked by abrupt policy shifts and a protectionist trade agenda. His online threats may be a negotiating tactic, but experts warn that tariffs can hurt US growth and fuel inflation.
The President-elect has also named two key figures to his economic team: Jamieson Greer as trade representative and Kevin Hassett as top economic advisor. Both Greer and Hassett served in Trump’s first administration.
As the global economy holds its breath, one thing is clear: Trump’s trade war threat has sparked a fiery response from China and Mexico, and the world will be watching closely to see how this situation unfolds.
