China and Mexico stand firm in the face of Trump’s tariff threats

Trump threatens Mexico, Canada, and China to increase tariffs on products from those countries until migrant arrivals and drug imports decrease. The three countries responded.

November 27, 2024 by Pablo Meriguet
Spokesperson for the Chinese embassy in Washington, Liu Pengyu, and Mexican President Claudia Sheinbaum. Photo: Liu Pengyu and Presidencia MX

Several days ago, the president-elect of the United States, Donald Trump, announced his intention to impose a 25% tariff on Mexican and Canadian products until the arrival of migrants and drugs, especially fentanyl, allegedly from Mexico and Canada is reduced.

In a post on his social network Truth Social, the incoming far-right president reaffirmed his xenophobic positions on immigration and blamed Mexico, China, and Canada for the appearance of fentanyl in the country. “As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before. Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open Border. On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States and its ridiculous Open Borders. This Tariff will remain in effect until 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 long-simmering 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 high price!”

Similarly, Trump has confirmed that he will increase tariffs on Chinese products by 10% until the entry into the United States of products used in the manufacture of fentanyl in China from China decreases: “Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter.”

China’s response

Beijing has responded sharply to the Republican president-elect’s threat, stating that no country stands to gain anything if the two superpowers enter a trade war. Han Zheng, Vice President of China, said in this regard at the Opening of the International Supply Chain Expo: “We are in a new period of turmoil and change, and the fragmentation of the global economy has intensified.”

For his part, Liu Pengyu, spokesman for the Chinese embassy in Washington, said that it is false that China facilitates the trade of fentanyl precursors; he also emphasized that China has implemented clear and objective measures to fight drug trafficking at the local and international levels: “The Chinese side has informed Washington about the progress in law enforcement operations related to narcotics.”

For its part, the Asian country’s Secretariat of Foreign Affairs said that fentanyl consumption is not China’s problem, but that of the United States. It also stated that China, unlike the United States, has one of the most rigorous and successful drug control policies in the world, and that is why they have offered their advice to the American authorities to deal with the serious fentanyl epidemic: “China remains willing to continue this cooperation on the basis of equality, mutual benefit, and mutual respect. We hope that the United States will not take our goodwill for granted and will work to ensure that the hard-won positive dynamic is maintained.”

According to some estimates, about 75,000 people in the United States die each year from fentanyl use, making it one of the leading causes of death among adults under the age of 45. In 2019, some US experts identified that China is one of the countries that most produce the chemicals required by drug traffickers to produce drugs, but that in no way implies that China is a sort of sponsor of illegal fentanyl production, just that it is a major producer of chemicals. Despite this, Beijing adopted even more stringent measures to control the export of chemicals. This does not seem to matter much to Trump.

Mexico’s response

For her part, Mexico’s President Claudia Sheinbaum responded publicly to Trump on Tuesday, November 26, in her daily morning press conference, stating that the imposition of new tariffs will not reduce drug consumption in the United States, nor will it curb illegal migration to the United States; on the contrary, “it would cause the United States and Mexico inflation and job losses.” Likewise, Sheinbaum in a letter to Trump which she read aloud, clarified that Mexico, in the exercise of its sovereignty, is ready to impose its tariffs in response to a possible Trump decision.

On the contrary, to reduce migration, Sheinbaum pointed out that there are other mechanisms that have already been implemented: “Mexico has developed a comprehensive policy of attention to migrants from different parts of the world who cross our territory and are destined for the southern border of the United States of America. As a result and according to the figures of the Border Patrol and Customs of your country (CBP), the encounters at the border between Mexico and the United States have been reduced by 75% from December 2023 to November 2024; by the way, half of those who arrive is through an appointment legally granted by the US program called CBP1. For these reasons, migrant caravans no longer arrive at the border, even so, we must jointly arrive at another model of labor mobility that is necessary for your country and pay attention to the causes that lead families to leave their places of origin out of necessity.”

She highlighted: “If a percentage of what the United States spends on war is dedicated to building peace and development, we will be addressing the mobility of people in depth.”

Concerning the fentanyl epidemic in the United States, Sheinbaum expressed that the problem is based on consumption, in response to which the Mexican State has seized a large number of tons of drugs and more than 10,000 weapons, as well as the arrest of more than 15,000 people involved in drug trafficking. In addition, she emphasized that more than 70% of the weapons that enter Mexico illegally come from the United States: “The weapons are not produced by us, the synthetic drugs are not consumed by us, [however] those killed by crime to respond to the demand for drugs in their country, unfortunately, [yes] that falls on us.”

Canada’s response

For their part, senior Canadian officials sharply criticized Trump’s position on raising tariffs on Canadian goods. Canada’s exports are heavily dependent on the United States, with the vast majority of its exportable goods going to the United States.

Premier of Ontario Doug Ford, said, in a somewhat surprising tone “Comparing us to Mexico is the most insulting thing I have ever heard from our closest friends and allies, the United States…I found their comments unfair. I found them insulting. It’s like a family member stabbing you right in the heart.” In addition, Ford warned that Canada will respond harshly if Trump makes good on his promise.

For his part, Prime Minister Justin Trudeau reported that he spoke with Trump on the matter and that he believes there are “some of the challenges we can work on together.” His Secretary of Industry, François-Philippe Champagne, did not maintain such a conciliatory tone “We should not confuse the Mexican border with the Canadian border” he told the press a few hours ago.

Finally, Quebec Premier François Legault said that if the measure is carried out “it would mean tens of thousands of jobs lost…We cannot start a war. We have to do everything we can not to have these tariffs.”

Is there something else behind Trump’s announced measure?

What is certain is that while several analysts continue to debate whether Trump’s measure will be effective in combating drug trafficking and the entry of undocumented migrants, there may be another intention behind the announced decision.

One possibility is that this is a way to kick-start his national reindustrialization program. However, raising tariffs against imports without an ideological justification could provoke great resentment from the most neoliberal Republicans. This measure may be the veneer Trump needs to take to carry out his economic program without directly confronting an ultra-liberal ideology that a good part of his followers champion.

American nationalism, as it could not be otherwise, finds its limits in the very ultraliberal ideology that has been imposed for more than 30 years.