How Different Countries are Reacting to Potential Trump Trade War
President-elect Donald Trump has announced plans to slap punitive tariffs on Canada, China, and Mexico, explaining in a post on his Truth Social platform they are intended to curb the flow of illegal drugs, such as fentanyl.
“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before. Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open Border,” he wrote on his social media platform Truth Social.
Trump added that he would introduce a 25 percent tariff on all products coming into the U.S. from Canada and Mexico. He also said he would impose an additional 10 percent tariff on Chinese goods.
Then-President Donald Trump shakes hand with China’s President Xi Jinping at the end of a press conference at the Great Hall of the People in Beijing on November 9, 2017. Chinese officials have said “no one will win a trade war.”
Fred Dufour/AFP via Getty Images
China
The Chinese government has said that “no one will win a trade war.”
Spokesman at the Chinese embassy in Washington Liu Pengyu told the BBC that China “believes that China-U.S. economic and trade cooperation is mutually beneficial in nature.”
Trump said on Monday that he will impose an additional 10 percent tariff on Chinese goods entering the U.S. when he returns to the White House, warning that “massive amounts of drugs” are still entering the U.S. despite numerous talks.
The Chinese embassy in Washington told Newsweek: “Carrying out counter-narcotics cooperation is one of the important common understandings reached between President Xi and President Biden during their meeting in San Francisco in 2023.
“The counter-narcotics authorities of China and the U.S. have resumed regular communication since the San Francisco Summit. The Chinese side has notified the U.S. side of the progress made in U.S.-related law enforcement operations against narcotics. China has responded to U.S. requests for verifying clues on certain cases and taken action.
“All these prove that the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality.
“About the issue of U.S. tariffs on China, China believes that China-U.S. economic and trade cooperation is mutually beneficial in nature. No one will win a trade war or a tariff war.”
Canada
Canadian Prime Minister Justin Trudeau had a constructive conversation with Donald Trump approximately two hours after the tariff announcement, according to reports from The New York Times and the BBC, both citing a Canadian official.
But some Canadian officials have reacted with concern to the proposals.
Ontario Premier Doug Ford said the move would be “devastating to workers and jobs” while the Canadian American Business Council (CABC) said it would “harm businesses on both sides of the border.”
Global Affairs Canada, which coordinates media relations for the Canadian government referred Newsweek to a statement from Canadian Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic LeBlanc, which said Canada “places the highest priority on border security and the integrity of the shared border.”
Mexico
Mexico’s President Claudia Sheinbaum has said introducing tariffs are not the best solution to the problems facing Mexico-U.S. relations.
“Migration and fentanyl consumption will not be addressed with threats or tariffs,” she wrote on X, formerly Twitter, on Tuesday.
“Mexico is moving forward with results in comprehensive actions; cooperation and understanding are necessary.
“Dialogue is the way,” she added.
In a letter to Trump, she also said Mexico would retaliate with tariffs on U.S. imports, should Trump go ahead with the plan.
“For every tariff, there will be a response in kind, until we put at risk our shared enterprises,” she said.
The U.K.
British Trade Secretary Jonathan Reynolds has said the U.K. is prepared for “all eventualities,” should Trump decide to levy tariffs against the country.
The U.K. should be an advocate for “open, transparent, free trading relationships around the world,” he told the Commons Business and Trade Committee, per The Independent.
He said tariffs hurt both parties and would impact the cost of living.
Germany
Germany’s economy minister and vice chancellor Robert Habeck has said that Germany, and Europe as a whole, should also be prepared for the possibility of U.S. tariffs.
“We have to be prepared for the fact that something similar could also happen to Europe or Germany,” he told a business conference in Berlin, per RTÉ.
The EU must react to this in a united manner (and) speak together as Europe,” he said, adding that the continent’s leaders should seek dialogue before thinking about retaliatory measures.
“It must be made clear that in the end everyone loses” from tariffs, including the United States, Habeck said.
The European Union
E.U. trade chief Valdis Dombrovskis said there was a general consensus among the bloc’s ministers to maintain “constructive engagement” with the U.S.
“However, if we see certain new measures addressed against the European economy or European companies, we should be ready to react in a coordinated, precise and proportionate way,” he said, according to Reuters.
What Is a Trade War?
A trade war is an economic conflict in which countries impose trade barriers, such as tariffs, quotas, or other restrictions, on each other to protect their domestic industries or retaliate against perceived unfair trade practices.
These barriers are designed to make imported goods more expensive or limit their availability, theoretically encouraging consumers to purchase domestically produced alternatives.
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