Trump's Tariff Threat: Global Economic Repercussions Loom

Officials from Mexico, Canada, and China warn about potential economic harm due to U.S. President-elect Donald Trump's proposed import tariffs. Leaders urge dialogue to avoid escalating trade tensions. Concerns arise over potential violation of the USMCA and its impact on global markets and jobs.

North American and Chinese officials are cautioning against U.S. President-elect Donald Trump's proposed tariffs, emphasizing possible economic damage. Mexico, Canada, and China are among the key trading partners affected by the potential 25% tariff on imports from Canada and Mexico, and an additional 10% levy on Chinese goods.

Mexican President Claudia Sheinbaum has expressed intent to reach out to Trump, advocating for dialogue. Rhys Mendes from the Bank of Canada highlights the profound impact such moves could have on both U.S. and Canadian economies. China's embassy warns that a trade war would yield no winners.

Trump's stance, focusing on migration and drug-related issues, suggests tariffs as a negotiating tool rather than a pure economic strategy. The threatened tariffs may contravene the U.S.-Mexico-Canada Agreement, creating legal and economic challenges in the region.

(With inputs from agencies.)