'No One Will Win A Trade War,' Says Chinese Embassy In USA On Trump’s Tariff Threat

Trump’s Trade War: On Monday, the Chinese Embassy in Washington warned that neither the United States nor China would benefit from a trade war. The statement followed US President-elect Donald Trump's threat to impose an additional 10 per cent tariff on all Chinese imports once he takes office on 20 January.  

Trump also pledged to introduce a 25 per cent tariff on all goods from Mexico and Canada, citing issues such as illegal immigration and drug trafficking. "On January 20th, as one of my first Executive Orders, I will sign all necessary documents to impose a 25 per cent tariff on ALL products from Mexico and Canada, addressing the absurd Open Borders policy," Trump stated on Truth Social.  

Violation Of USMCA

These proposed tariffs could contravene the terms of the US-Mexico-Canada Agreement (USMCA), a trade pact signed into law by Trump in 2020, which preserved largely duty-free trade among the three nations.  

Mexico and Canada, the United States' largest trading partners, are heavily reliant on US markets. In 2023, over 83 per cent of Mexico's exports and 75 per cent of Canada's exports were destined for the United States.  

Tensions surrounding trade are not new; during the contentious USMCA negotiations, both Canada and the US imposed sanctions on each other's products. Trump's latest tariff proposal threatens to revive those tensions, raising questions about the stability of the trilateral trade agreement.  
 

(With Reuters inputs)

Also Read: Trump’s Trade War: Pledges 25% Tariffs On Canada, Mexico; More On China Too | Republic Business