President-elect Donald Trump posted on Truth Social that he will impose a 25% tariff on all Mexican and Canadian goods through an executive order on Jan. 20, and the tariff will stay "until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this longtime problem. We hereby demand that they use this power, and, until such time that they do, it is time for them to pay a very big price!"
As the leaders of some Canadian provinces have said their country should cut its own deal with the incoming Trump administration because Mexico hasn't aligned with the U.S. to keep Chinese electric vehicles out of its market, the new Mexican President Claudia Sheinbaum told reporters that it's nothing to worry about.
Although some trade attorneys have been worrying that a Trump administration will discourage a Republican Congress from bringing back Generalized System of Preferences program tariff breaks for developing countries, members of the House Ways and Means Committee did not endorse that point of view.
President-elect Donald Trump’s selection of billionaire businessman Howard Lutnick to be Commerce secretary (see 2411190036) drew mixed reaction on Capitol Hill this week.
Trump transition team members may have already drafted an executive order hiking tariffs on Chinese imports, said Peterson Institute for International Economics fellow Mary Lovely, during a webinar moderated by former European commissioner and now PIIE fellow Cecilia Malmstrom.
Members of the House Ways and Means Committee majority, who will lead the extension or expansion of the first Trump term income tax cuts, are expressing some hesitancy about using tariffs as a pay-for.
President-elect Donald Trump will nominate billionaire businessman Howard Lutnick to be Commerce Department secretary, Trump announced Nov. 19. "He will lead our tariff and trade agenda, with additional direct responsibility for the Office of the United States Trade Representative," Trump said in a statement.
With just 14 days in session scheduled for the House of Representatives before the end of the year, Ways and Means Committee members are not expressing optimism that a renewal of the Generalized System of Preferences benefits program will be one of the items that gets a vote this Congress.
The U.S.-China Economic and Security Review Commission, in its annual report to Congress, said that ending de minimis for all e-commerce is one of its top 10 recommendations, and said that if Congress passes such a law, it should provide CBP adequate resources to implement and enforce the change.
In addition to tariff hikes expected in 2025, trade experts are also thinking about the 2026 review of USMCA, and the investment and supply chain planning uncertainty that is likely to follow.