Zhou Xiaoming

Opinion | Why no country is safe from Trump’s pro-tariff agenda

Trump’s challenge to global trading norms fits with his agenda of undermining consensus and punishing US trading partners individually

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Zhou Xiaoming

Published: 8:30pm, 3 Dec 2024

US president-elect Donald Trump’s announcement of 25 per cent tariffs on all products from Mexico and Canada – along with a 10 per cent tariff on top of any additional tariffs on Chinese imports – caught many off guard. Last month, Mexican President Claudia Sheinbaum had reassured her people that Trump’s election victory was “no cause for concern”.

Trump made the pledge nearly eight weeks before he begins his second term. Clearly, he was in a rush. Such a high-handed approach could well become the modus operandi for Trump 2.0.

When I studied economics at Columbia University over three decades ago, professors told us that the purpose of taxing imported goods was primarily twofold: raising government revenue and protecting local industry. Apparently, Trump is more imaginative than most of us; he intends his tariffs to address illegal immigration and the fentanyl crisis.

And yet, these two issues are, in essence, about border control. They are largely the US’ own problems and are neither encouraged nor supported by other governments. As such, it would be proper for Washington to appreciate any help from foreign governments in solving those issues.

Punishing other countries for illegal immigration and drug trafficking is akin to demanding neighbours pay one’s medical bill just because of the proximity of their houses. This approach requires other countries to divert resources to help the US with problems of its own making, as if they were internal issues. Trump’s move is yet another case of US hegemony in action.

02:54

Trump threatens new anti-drug tariffs on ‘day 1’ for China, Canada, Mexico

Trump, a self-proclaimed “tariff man” who calls tariff “the most beautiful word”, sees the measures as a useful tool to achieve his goals and is never shy about using them. For this reason, tariffs could turn into arguably his single most important instrument – an omnipotent tool that he wields at will when it comes to addressing America’s problems, be it fentanyl, immigration, intellectual property rights or trade deficits.