Biden urges Trump to reconsider Mexico

On November 28 local time,Relatively good foreign exchange dealers US President Biden publicly urged President-elect Trump to reconsider his plan to impose a 25% tariff on imports from Mexico and Canada, stating that this move could seriously harm the relationship between the US and its two major North American allies.

Controversy over Trump's Tariff Plan

On November 25, Trump announced on social media his plan to impose a 25% tariff on all goods imported from Canada and Mexico upon taking office on January 20 next year. This decision has met with strong opposition from both Mexico and Canada and has quickly gained wide international attention.

Biden said that the US is bordered by Mexico, Canada, and the Pacific and Atlantic Oceans, and "damaging relations with Mexico and Canada is the last thing we should do." Biden believes Trump's tariff plan not only threatens cross-border trade but could also affect regional energy and food security.

Strong Response from Canada and Mexico

Canadian Prime Minister Trudeau spoke with Trump on November 25 and called for constructive ways to resolve their differences. He indicated that he would convene the provincial premiers within the week to discuss the impact of this tariff plan and actively seek countermeasures. Saskatchewan Premier Scott Moe described the plan as "catastrophic," emphasizing the need for cooperation rather than confrontation for North America's energy and food security.

Mexican President Sheinbaum warned that the US tariff plan could worsen trade relations, increase business operational risks, and ultimately exacerbate inflation and unemployment. He particularly pointed out that major Mexican export companies to the US, such as General Motors, Stellantis, and Ford, have a long history of cooperation and should not be impacted by tariff policies. Mexican Economy Minister Ebrard predicted that the tariff plan would cost the US 400,000 jobs and significantly hinder its economic growth, while also impacting Mexican exports.

Monreal, the coordinator of the Mexican ruling party, the National Regeneration Movement Party, in the House of Representatives, pointed out that this move violates the USMCA (United States-Mexico-Canada Agreement) and that trade retaliation would only harm the North American economy, ultimately passing the cost onto consumers.

International Community Calls to Avoid Trade War

The impact of the tariff plan has extended beyond North America. German Economy Minister Habeck called for dialogue between the EU and the US to avoid a potential trade war. He warned during a meeting with industry representatives that "a trade war would lead to losses for all parties involved, including the US and Europe."

Future Outlook

Trump's tariff plan has not yet been formally implemented, but it has already raised widespread concerns both regionally and internationally. Various parties are calling for resolving differences through negotiation to prevent further escalation of trade conflicts. In the coming weeks, the policy direction of the new US administration will become a focal point of global attention.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.