The new tariffs and the reactions of the markets
President-elect Donald Trump’s recent statements regarding the imposition of new tariffs on goods from China, Canada and Mexico have shaken the financial markets. Trump announced his intention to apply a 10% tariff on Chinese goods and 25% on all products from Mexico and Canada. These measures, communicated through his profile on Truth Social, have already had significant repercussions, with the Canadian dollar hitting a four-year low and the Mexican peso approaching its weakest levels since 2022
.
Motivations behind the new tariffs
Trump justified his decisions by stating that the tariffs are necessary to combat the trafficking of migrants and illegal drugs. In particular, he accused China of not complying with its commitments regarding the fight against fentanyl, a powerful opioid. According to Trump, “drugs are invading our country, especially through Mexico, at levels never seen before.” This rhetoric has fueled the debate about the effectiveness of trade policies and their ability to deal with complex problems such as drug trafficking
.
Implications for the global economy
The measures announced by Trump not only influence markets, but also pose questions about trade relations between the United States and its neighbors. The idea of a 25% tariff on all products from Mexico and Canada, which Trump intends to sign on his first day in office, could have devastating effects on the economies of these countries. Asian stock exchanges, for example, have already registered a decline, with Nikkei closing in the red, highlighting the uncertainty and
concern of investors.
The future of international trade
With the imminent implementation of these tariffs, the future of international trade appears uncertain. Companies need to prepare for a tougher business environment, with potential cost increases and disruptions in supply chains. In addition, trade tensions could intensify, leading to retaliation from other countries. Analysts warn that protectionist policies may have long-term consequences, not only for the United States, but for the entire
global economy.