Officials from Canada, Mexico, and China have expressed strong concerns over US President-elect Donald Trump’s vow to impose sweeping tariffs on the three countries, warning that such a move could destabilise the global economy and risk retaliatory actions.
Trump’s announcement on Monday night, which plans to introduce 25% tariffs on goods from Mexico and Canada, and 10% on Chinese imports, is a direct response to his goals of combating illegal immigration and drug trafficking.
However, critics fear that the economic consequences could ripple through all four nations, with Mexico’s President Claudia Sheinbaum cautioning that the move could lead to a “trade war” that endangers shared business interests.
“This is a dangerous path,” Sheinbaum stated. “One tariff will follow another, and we risk putting our common businesses at risk.”
Canada’s Prime Minister Justin Trudeau, who spoke with Trump following the announcement, has called for a measured approach to address the situation. In a statement, Trudeau emphasised that Canada was ready to work with the US in a “constructive way,” and that his government would meet with provincial leaders to discuss the implications of the proposed tariffs.
“This is a relationship that we know takes a certain amount of working on, and that’s what we’ll do,” Trudeau said.
China also voiced its concern, with a spokesperson for the Chinese embassy in Washington warning, “No one will win a trade war or a tariff war,” and denying claims that China is complicit in the smuggling of fentanyl precursors to the United States, which Trump cited as a key justification for the tariffs.
The backlash comes just one day after Trump outlined his proposed tariffs in a post on his social media platform, Truth Social, marking his first official policy push ahead of his January 20 inauguration.
According to a spokesman for Trump’s transition team, world leaders have been eager to “develop stronger relationships” with the incoming president, but it remains unclear how the US’s closest trading partners will respond to the tariffs.
In Canada, leaders of various provinces have also warned of potential economic fallout. Deputy Prime Minister Chrystia Freeland pointed out that Canada’s exports to the US—such as oil, electricity, and critical minerals—are vital to the American economy.
“We sell them what they really need,” Freeland said, adding that any tariffs would be “devastating to workers and jobs in both Canada and the US.”
Ontario Premier Doug Ford echoed this sentiment, condemning the comparison between Canada and Mexico, which Trump has often used as a justification for his tariff threat.
“To compare us to Mexico is the most insulting thing I’ve ever heard,” Ford remarked.
Economists and financial analysts have also raised alarms, as the Canadian dollar and Mexican peso both saw sharp declines following Trump’s tariff announcement.
The Canadian dollar fell to its lowest point since May 2020, dipping below 71 US cents, while the Mexican peso also dropped to a year-low value.
While Canadian leaders have worked to maintain calm, with Trudeau urging lawmakers not to “panic” but to take a methodical approach, Sheinbaum and other Mexican officials have indicated that Mexico would not hesitate to retaliate with its own tariffs on US imports, particularly targeting industries such as car manufacturing, where cross-border production between the US, Canada, and Mexico is common.
The conflict over trade tariffs is likely to continue into Trump’s first days in office, with tensions running high over how the new president plans to balance his “America First” agenda with the complex, interwoven economies of his largest trading partners. While trade talks continue, the global markets and political leaders will be closely watching for further developments.
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