Trump's tariff threat worked on Colombia, but his plans for Canada and Mexico carry higher stakes

Automotive and Transportation Automotive and Transportation

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Trump's tariff threat worked on Colombia, but his plans for Canada and Mexico carry higher stakes

^{Published on 2025-01-28 09:21:32 - MSN}

Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday. But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with what they say would be

The article discusses former President Donald Trump's use of tariffs as a negotiation tool, particularly highlighting his recent success with Colombia where he threatened to impose a 100% tariff on Colombian exports if they did not address the issue of Chinese goods being rerouted through Colombia to avoid U.S. tariffs. This threat led to Colombia agreeing to cooperate with U.S. customs to prevent such practices. The article also explores the implications of Trump's tariff strategies on broader trade relations, especially with Canada and Mexico, which are part of the USMCA (United States-Mexico-Canada Agreement). Trump's potential plans to impose tariffs on these countries could disrupt significant trade flows, given the high volume of trade under the USMCA. The stakes are higher with these neighbors due to the economic integration and the potential for retaliatory measures, which could lead to a broader trade war. The piece suggests that while Trump's tariff threats can yield short-term gains, the long-term effects on international trade relations and economic stability are complex and potentially risky.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/trump-s-tariff-threat-worked-on-colombia-but-his-plans-for-canada-and-mexico-carry-higher-stakes/ar-AA1xZQ4y ]

Contributing Sources

MSN

N@N

Trump's tariff threat worked on Colombia, but his plans for Canada and Mexico carry higher stakes