Donald Trump has started his second presidential term aggressively. His government, for example, has just announced 25% tariffs (i.e. taxes) on goods from Mexico and Canada. Because the three countries have had a free trade agreement since 1994, this is a massive spanner in the works.
The two neighbouring North American nations have reacted by announcing their own tariffs on US imports. But Trump will speak to Mexican and Canadian leaders today, before the collection of tariffs is due to start on Tuesday 4 February.
Trump has argued that tariffs on imports could help to boost manufacturing in the US. But as both a dog whistle to xenophobic supporters and an excuse for a ‘national emergency’ argument, he has claimed the tariffs aim to deal with illegal immigration and the trafficking of drugs like fentanyl.
In reality, however, tariffs would probably increase the price of goods that are not produced inside the US, and would do little to stop demand within the US for drugs or immigrant workers.
Mexico calls out Donald Trump hypocrisy
The northern states of Mexico would suffer in particular, and the country as a whole could reportedly lose up to 1.8 million jobs as a result of the tariffs. The automotive industry would face a particularly big shock.
President Claudia Sheinbaum has called for the prioritisation of dialogue in order to resolve the issues Trump mentioned. And Mexican businesses and banks have all backed this call for dialogue.
However, Sheinbaum also called for important perspective on Trump’s questionable reasoning for the tariffs, notably the trafficking of fentanyl.
Who distributes that drug? Who sells it? Who launders that money? Who has addiction problems? Are they really going to resolve the addiction problem with 25% tariffs?
And if politicians in Washington really wanted to deal with drug crime in the US, she asked:
Why are they not investigating the money laundering of criminal groups over there? Why are they not putting all their intelligence into working to find the criminal groups selling fentanyl or other drugs on their territory?
She also emphasised the other side of the debate, stressing that:
74% of the weapons organised criminals use in Mexico come over illegally from the [US] arms industry
Nonetheless, she offered constructive support, saying:
Mexico doesn’t just want fentanyl not to arrive in the US, we don’t want it to arrive anywhere. That’s why, if the US wants to fight criminal groups and wants to do it together, we should work in a comprehensive way, but always under the principles of shared responsibility, mutual trust, collaboration and, above all, respect for sovereignty.
Brash 21st century imperialism
Trump has also announced a 10% tariff on Chinese good, which is lower than he had previously threatened. And China is currently responding in a restrained manner, promising “countermeasures” and a symbolic challenge at the World Trade Organization.
Beijing’s calm response is likely because it has a much stronger negotiating position, as the world’s second-largest economy, than Mexico or Canada.
Meanwhile, Trump has also tried to exert US power in Latin America by bullying Panama to reduce its cooperation with China.
With reducing capacity through the Panama Canal due to a severe drought, the North American imperial power is interested in securing preferential treatment for its own interests. And in Greenland, the ongoing loss of ice due to manmade climate destruction is making both the mining of precious resources and the use of Arctic shipping routes increasingly more viable.
It seems that US imperialism under Trump is reducing its covert actions to ensure its global power, apparently dumping the controversial USAID (which journalist Matt Kennard says is often just “a CIA front”). To replace that apparatus, his administration will simply be openly aggressive in its push for dominance.
Featured image via the Canary
