Trump Tariffs on Canada & Mexico Flame Trade Concerns
U.S. President-elect Donald Trump has signaled his intention to upend the USMCA, the North American free-trade agreement, and impose new tariffs on Mexico and Canada. These threats, announced on Trump’s social media, are part of a broader trade agenda that includes additional tariffs on China.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” said Trump. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
The move has already raised concerns among electronics industry stakeholders, economists, business leaders, and foreign officials, who are bracing for potential economic and diplomatic fallout.
The Electronic Components Industry Association (ECIA) warns that tariffs will harm American manufacturers and consumers. ECIA President & CEO David Loftus told EPSNews that these tariffs will increase costs and disrupt global supply chains, ultimately hurting U.S. companies’ competitiveness. “With the U.S. semiconductor industry already dependent on international collaboration, this policy risks stifling innovation and undermining our technological leadership,” he argues. Loftus cautions that such broad tariffs could stifle innovation and undermine U.S. technological leadership.
