Trump issued tariff threats to Mexico, Canada, and China, causing severe market fluctuations.
President-elect Trump declared that he would impose additional tariffs on neighboring Canada and Mexico as well as China, marking his first clear threat to curtail global trade flows since his election, which has led to market turmoil.
On Monday, Trump posted on his Truth Social platform that he would impose an additional 10% tariff on goods from China, while imposing a 25% tariff on all products from Mexico and Canada.
As a result of this news, the Canadian dollar fell to a four-year low, the Mexican peso also approached its lowest level since 2022, and the offshore yuan experienced a slight decline.
Neil Thomas, a researcher on Chinese politics at the Asia Society Policy Institute, stated: "This tariff is primarily aimed at combating fentanyl trade."
Imposing a 25% tariff on all imported products from Canada will place significant pressure on energy costs.
Oil, natural gas, and other energy products are the largest export categories from Canada to its southern neighbor, and Canada is currently the largest external supplier of crude oil to the U.S. to date.