Still last Saturday (1), White House accused the Asian giant of ‘passivity’ in drug trafficking for the United States
The president of the, fulfilled on Saturday (2) his trade threats, imposing 25% rates on products from his immediate neighbors, and, as well as a 10% rate of products. The measure was signed in three separated executive orders at Trump’s private residence in Mar-A-Lago, Florida, and will come into force exactly at 12:01 am on Tuesday, February 4, Washington time (2h01 Brasília).
In all cases, the argument presented was the involvement in one form or another of the three countries in fentanyl trafficking and other drugs to the United States, “where they endanger the social fabric”, with very serious accusations against the governments of the Mexico and China.
The three orders contained threats so that the affected countries did not respond with similar retaliatory measures, otherwise it will increase the percentage of tariffs or the scope of the products, but both Canada and Mexico ignored them and, soon after, announced their own measures.
China promises retaliation
In turn, China said on Sunday (2) that it will take “corresponding contracted” to “firmly protect” their rights and interests after the United States decided to impose 10% rates on the Asian country. “China firmly opposes these tariffs,” the Chinese Ministry of Commerce said in a statement today, announcing that he will file a complaint to the World Trade Organization (WTO) on United States “illegal practices”.
On Saturday, the White House not only accused China of passivity in drug trafficking for the United States, but went further, claiming that the Asian country “actively supports and expands the poisoning business of our citizens.” In addition, he accused the Chinese Communist Party of “subsidizing and encouraging Chinese chemical companies to export fentanile and chemical precursors used to produce synthetic opioids sold illegally in the United States.”
In his response, Beijing said he hoped Washington “see objectively and rationally his own problems, such as the Fentanil,” instead of resorting to “threats against other countries” with the imposition of tariffs. And as Donald Trump had already warned in previous days, the White House officialized a threat to China – the same one he did to Canada and Mexico – against any temptation to pay in the same coin.
“If China retaliates the US in response to this action by imposing similar measures to US exports there, the president may increase (tariffs) or expand his scope to ensure the effectiveness of this action,” he warned. In January, China’s spokesman He Yadong stated that “tariffs will hurt both China and the United States, as well as the global economy,” while experts in the Asian country say they will only cause costs to companies increase costs. and American consumers, while altering the functioning of global supply chains.
An “intolerable alliance with drug trafficking”
In Mexico, the statement that drug cartels “have an intolerable alliance with the Government of Mexico (who) has endangered the national security of the United States was very badly received”, contained in the same executive order. “We categorically reject the White House against Mexico’s government to have alliances with criminal organizations, as well as any interventionist intention in our territory,” replied Mexican President Claudia Sheinbaum in a long message published on social network X.
Sheinbaum has announced “tariff and non -tariff measures in defense of Mexico’s interests”, something that called “Plan B” and that the Ministry of Economy will implement in the coming days. For Mexico, trade with the United States is so important that by 2023 exports to the country represented almost 30% of Mexican GDP, according to a report by the Mexican Institute of Competitiveness (IMCO).
Canada at risk of recession
Canada also did not get arms crossed either. Shortly after Trump’s decision was announced, Prime Minister Justin Trudeau stated that his government would retaliate and impose a 25% tax on the equivalent of $ 155 billion in the US trade. According to the Canadian prime Minister, from Tuesday, Canada will tax $ 30 billion in US imports.
Another US $ 121 billion in trade will be taxed 21 days later “to allow Canadian supply companies and chains to seek alternatives.” The decision was seen by Canada as a declaration of trade war. Analysts said that if the tariffs remain in force, Canada could recession within six months.
Trump’s decision, despite being anticipated on several occasions, is considered a torpedo in the T-MEC structure, the agreement that joins the three US countries since 1994 under the premise of free trade and today goes through the air. Trudeau and Sheinbaum have already talked on Saturday to coordinate a common position.
Posted by Luisa Cardoso
*With information from EFE
