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Shocking : The US Pressures Canada & Mexico to Tax China – North America's Trade War Erupts!

Members of Mexico's National Guard queue to board a plane bound for the northern border after Mexican President Claudia Sheinbaum agreed with U.S. President Donald Trump to bolster border enforcement efforts in response to Trump's demand to crack down on immigration and drug smuggling, at the Cancun International Airport, in the metropolitan area of Cancun, Mexico February 4, 2025.
Members of Mexico's National Guard queue to board a plane bound for the northern border after Mexican President Claudia Sheinbaum agreed with U.S. President Donald Trump to bolster border enforcement efforts in response to Trump's demand to crack down on immigration and drug smuggling, at the Cancun International Airport, in the metropolitan area of Cancun, Mexico February 4, 2025. 

The US Pushes Canada & Mexico to Impose Tariffs on China

US Treasury Secretary Scott Bessent recently urged Canada and Mexico to adopt higher import tariffs on Chinese goods to create a "North American trade fortress." This move is seen as a measure to counter fierce competition from China while protecting the region's economy from an influx of cheap imports.

Is the US Forming a North American Anti-China Alliance?

As the US considers imposing a 25% tariff on imports from Mexico and Canada (starting March 4, 2025), Mexico has swiftly proposed a similar tariff on China. This proposal has been welcomed by Washington, which views it as a crucial strategic step.

πŸ‘‰ Read more on Reuters

Canada Remains Undecided – Will It Follow the US?

While Mexico has quickly adjusted its tariff policies to avoid US penalties, Canada is still weighing its options. However, US Treasury Secretary Scott Bessent emphasized that if Canada joins this trade alliance, North America will have a stronger economic shield against China’s growing influence.

πŸ‘‰ How can Canada benefit from this tariff policy?

China Reacts Strongly – Trade Tensions Escalate

China has immediately voiced opposition, arguing that US and allied tariff policies violate WTO regulations. Beijing also warned that businesses in the US, Canada, and Mexico could suffer significant consequences, particularly in terms of pricing and global supply chains.

πŸ‘‰ How might China retaliate?

Impact on North American Consumers?

If this tariff policy is implemented, consumer prices in the US, Canada, and Mexico will rise, directly impacting the economy and consumers. Economic experts warn that supply chains could face severe disruptions, placing businesses in a difficult position.

πŸ“Œ Read more about the trade war’s effects here

Conclusion

The US’s pressure on Canada and Mexico to impose tariffs on China is escalating trade tensions in North America, potentially leading to significant shifts in global economic relations. Currently, negotiations are ongoing, but if Canada and Mexico fail to take clear action, they may face economic sanctions from the US.

πŸ“’ What are your thoughts on this issue? Share your opinion in the comments below!

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