MUMBAI: The world woke up Tuesday staring at a murky trade war after US president Donald Trump surprised on the downside with slapping 25% each additional import duties on Mexican and Canadian goods landing on American soil, and an additional 10% on Chinese goods, on top of the 10% announced early last month.
The punitive tariffs swiftly met with retaliatory tariffs in equal measure by all the three nations which are the largest trading partners of the world’s biggest consumer market.
Describing the 25% tariffs on Canada and Mexico, as a “measure for safeguarding the nation” under the International Emergency Economic Powers Act, Trump said the tariffs are “to combat the extraordinary threat to US national security, including to public health posed by unchecked trafficking of lethal drugs like fentanyl and nitazene synthesis which could kill 9.5 million Americans.”
According to the official CDC data, as much as 68% of all drug poisoning deaths in 2022 and 2023—2,16,294 in total in the US—were caused by synthetic opioids, primarily fentanyl, the White House said.
Some basic facts: In 2024, Mexico’s total exports to the US were $506 billion in 2024, up 6% from 2023 and total bilateral trade was $839.9 billion. The US exported $334 billion to Mexico, making Mexico the US’ top trading partner for the second consecutive year in 2024. The US had a trade deficit of $171.8 billion. Mexico is the biggest supplier of passenger cars to the US, with 23% of all US car imports.
China’s total trade with the US was $582.4 billion in 2024, while the US exports to China was only $143.5 billion and imports were $438.9 billion, resulting in a trade deficit of $295.4 billion.
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