The News
US President-elect Donald Trump’s pledge to impose tariffs on imports from Mexico and Canada, and hike duties on Chinese goods, rattled global markets and sparked concern among the targeted countries.
Mexico’s president wrote in a letter to Trump that “for every tariff, there will be a response in kind,” while Canada’s prime minister stressed the need for cooperation.
“Among Mexico’s main exporters to the United States are General Motors, Stellantis, and Ford Motor Company,” Mexican President Claudia Sheinbaum wrote. “Why impose a tariff that would jeopardize them? Such a measure would be unacceptable and would lead to inflation and job losses.”
The impact of the tariffs on global commerce “will be immediate and extensive,” The Economist wrote, with the automotive industry likely to be especially affected.
China, which has been bracing for another trade war, could ignite a currency war in response, allowing the yuan to depreciate to make Chinese exports cheaper, The New York Times wrote. But such a move risks damaging its already fragile domestic economy.