Trump Targets China, Mexico, And Canada With Tariffs; Spares India (For Now)—Here's How US President-Elect Plans Trade Restrictions

United States (US) President-elect Donald Trump has unveiled plans to impose tariffs on China, Mexico, and Canada, signalling a continuation of his administration’s strategy to use trade restrictions as a tool for reviving domestic manufacturing and gaining leverage in trade negotiations.

In a statement on social media, Trump announced that, upon taking office, he would sign an executive order to implement a 25 per cent tariff on all imports from Mexico and Canada. Additionally, Chinese goods will face a 10 per cent tariff until Beijing takes concrete steps to curb the smuggling of synthetic opioid fentanyl into the US.

Notably, India is absent from Trump’s initial tariff plans, though it has not been spared his criticism. Trump labelled India a “very big [trade] abuser,” suggesting a potential revival of trade disputes over $75 billion in Indian exports to the US.

According to the Economist Intelligence Unit (EIU), Mexico, China, and Canada are the top three US trading partners most vulnerable to Trump’s proposed policies. The EIU ranks India eighth on the list of countries that could face trade challenges under Trump’s presidency.

Trump accused China of failing to deliver on its promise to crack down on drug trafficking, specifically fentanyl, despite assurances that drug dealers would face severe penalties, including the death sentence. “Until they stop, we will charge China an additional 10 per cent tariff on all their products entering the United States,” Trump said, reiterating his hardline stance.

The President-elect also expressed concerns over Mexico and Canada, citing issues with "ridiculous open borders" and the flow of illegal drugs and immigrants. “This 25 per cent tariff on their products will remain in place until these problems are resolved,” he declared, emphasizing that addressing these issues will be one of his first executive actions after taking office on 20 January.

While Trump’s renewed trade policies are expected to significantly impact China, research by Bernstein suggests that India may only see limited benefits. Instead, India could face renewed tariff pressures, as Trump’s rhetoric hints at revisiting the trade disputes of his first term.

As Trump prepares to assume office, his aggressive tariff strategy signals a sharp escalation in global trade tensions, with India and other US trading partners bracing for potential fallout from his policies.

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