Banca March: Trump has offered new clues on tariffs: he promises to increase them by 10% on all goods imported from China, and by 25% on products from Mexico and Canada. The main rationale for the tariff hike centres on combating the threat posed by fentanyl. In the case of China, the future president accused the country of not taking sufficient measures to stop the flow of illicit drugs crossing the US border through Mexico. Regarding Mexico and Canada, he warned that he will sign an executive order on his first day in office (20 January) and maintain the 25% tariff until the entry of fentanyl is contained.
During the election campaign, Trump announced a more aggressive proposal -60% on Chinese imports and between 10-20% on the rest of the world-. This new, more realistic approach has generated reactions in the markets and responses from diplomats. The Canadian dollar fell to a four-year low and the peso to its weakest levels in two years. Shortly after the announcement, Canadian Prime Minister Justin Trudeau reached out to discuss border security and trade. The spokesman for the Chinese embassy in the US, meanwhile, recalled the mutual benefit of trade cooperation.
