A 25% tariff on goods from Canada and Mexico will be the first document Trump plans to sign after joining as President.

Donald Trump has announced that the United States will impose a 25% tariff on its largest trading partners, China, Mexico, and Canada, effective from January 20, the day he takes the Presidential oath. An additional 10% tariff on Chinese goods aims to curb the smuggling of the opioid fentanyl, highlighting Trump’s broader strategy to protect U.S. economic and public health interests.

Tariffs Part of Trump’s China+1 Strategy
Trump has consistently promoted a China+1 strategy since his election campaign. He previously stated that U.S. citizens would be exempt from taxes “outrageously spent on wars” and promised higher tariffs on imported goods. The policy has already affected global business communities, with Trump indicating potential tariffs of 60% or more on Chinese imports and over 1,000% on vehicles from Mexico.

Measures Aimed at Curbing Illegal Immigration and Opioid Crisis
The tariffs are being framed as a tool to counter rising illegal immigration in the United States. Trump also highlighted concerns over fentanyl, which has reached record levels in the country. The administration criticised China for insufficient measures to curb the smuggling of the synthetic opioid despite repeated U.S. warnings and discussions in recent years.

Economic Impact and Job Creation Goals
Analysts estimate that the new U.S. tariffs could reduce China’s economic growth in 2025 by 0.5% to 1.0%. Trump’s plan also aims to revive domestic manufacturing jobs by reducing reliance on foreign imports and incentivising production within the United States, aligning with his broader economic and trade agenda.

Global Business Communities Brace for Consequences
The announcement has raised concerns in global markets, particularly among trading partners directly affected by the tariffs. Multinational companies and supply chains are expected to recalibrate strategies to mitigate potential financial impacts, while governments of China, Mexico, and Canada evaluate diplomatic and trade responses.