China warned on Tuesday, November 26, that “no one will win a trade war” after US President-elect Donald Trump promised to substantially increase customs duties on products, especially from China.
Concerns in Canada
Canada, also in Donald Trump’s sights, recalled this Monday afternoon that it is “essential for the energy supply” of the United States.
“Our relationship is balanced and mutually beneficial, especially for American workers,” Canadian Deputy Prime Minister Chrystia Freeland added in a statement, stating that Ottawa will continue to “discuss these issues with the new American administration.”
In the country, where 75% of exports go to the United States, the news caused a stir. Quebec Premier François Legault said this announcement represents “an enormous risk” for the Canadian economy. His British Columbia counterpart, David Eby, said “Ottawa must respond strongly.”
Mexico “has no reason to worry,” President Claudia Sheinbaum tried to reassure the day after the US elections. The three countries have been united for thirty years by a free trade agreement, renegotiated under pressure from Donald Trump during his first term.
The appointment last week as Secretary of Commerce of Howard Lutnick, CEO of the investment bank Cantor Fitzgerald and a sharp critic of China, confirmed the president-elect’s willingness to try to bend his trade partners to obtain better agreements and relocate production in the territory. American.
As for China, Donald Trump has promised customs tariffs of up to 60% for certain products, or even 200% on imports of vehicles assembled in Mexico.
He also wants to reintroduce customs duties of 10 to 20% on all products entering the United States, and the European Union has already said it is “ready to react” in the event of new trade tensions. Economists warn of the inflationary potential of such an increase in customs duties.
Source: BFM TV
