Biden Says Trump's Tariff Threat against Canada and Mexico is Counterproductive

President Joe Biden has described President-elect Donald Trump’s proposed 25% tariffs on imports from Canada and Mexico as "counterproductive," urging Trump to reconsider the move to avoid straining relationships with two of the U.S.'s closest allies.

Biden made his remarks during a Thanksgiving Day visit to Nantucket, Massachusetts, emphasizing the importance of maintaining strong trade and diplomatic ties with Canada and Mexico, given their pivotal roles in U.S. commerce.

Trump announced the tariffs on Truth Social, presenting them as a measure to address issues like illegal immigration and the fentanyl crisis, and stated that the tariffs would remain in place until these concerns were resolved.

Canada and Mexico are among the United States’ largest trading partners, ranking second and third in goods supplied to the U.S., respectively, behind China.

Biden criticised the proposal, warning of its potential to harm U.S.-Canada and U.S.-Mexico relations, particularly at a time when collaboration is crucial.

Mexican President Claudia Sheinbaum also commented on her conversation with Trump, clarifying that Mexico opposes closing borders and advocates for addressing migration with strategies grounded in human rights.

Canadian Prime Minister Justin Trudeau reiterated the importance of Canadian jobs, securing the border, and strengthening U.S.-Canada partnerships while discussing the issue with provincial leaders.

Economists have raised concerns that such tariffs could lead to increased prices for imported goods, with U.S. consumers bearing the brunt of these costs. They also warn of potential disruptions to key trade relationships, particularly given the framework of the USMCA (United States-Mexico-Canada Agreement), which was designed to encourage tariff-free trade across North America.

The tariff proposal aligns with Trump’s campaign promises to adopt stricter trade policies and reduce the U.S. trade deficit.

However, Biden’s criticism reflects a different approach, favouring collaboration over unilateral measures that risk economic and diplomatic stability.

The disagreement underscores the significant policy divide between the outgoing and incoming administrations, foreshadowing contentious debates over the direction of U.S. trade strategy.
Source: NBC
Edited by: Evans Momodu