(Washington D.C.) President-elect Donald Trump has laid out his vision for blanket tariffs on Canada, Mexico, and China. Trump announced on his social media platform that one of his first executive orders will be to slap an immediate 25 percent tariff on all Canadian and Mexican products entering the U.S. Trump’s rationale is that such harsh economic sanctions will force the U.S.’s two neighboring countries to curb the flow of illegal drugs and migrants across America’s northern and southern borders.
Shortly after the president-elect shared his blanket tariff plans, Prime Minister Justin Trudeau contacted Donald Trump directly.
Mexican President Claudia Sheinbaum stated that her country could respond to U.S.-imposed tariffs with its sanctions but warned the economic consequences would be dire for all concerned. The Mexican president said that ‘the main exporters from Mexico to the U.S. are factories owned by General Motors, Stellantis, and Ford Motor Company. So why apply tariffs that put them at risk?’
A political science professor at the University of British Columbia echoed her concern. Max Cameron said that most of the daily trade volume within North America is through multinational companies with facilities in the U.S., Mexico, and Canada.
However, a Canadian-born author who is educated and living in the U.S. thinks Trump might have a much larger plan. David Frum is a political commentator and a speechwriter for George W. Bush. Today, he is a senior editor for The Atlantic magazine.
Frum says that, for Donald Trump, free trade between tightly integrated neighbors presents a winner-takes-all scenario. Frum suggests that Trump’s endgame might be to form North America into an exclusive Trade Bloc, where most outside economies can largely be ignored.
Political commentator and author David Frum.
NAFB News
