Incoming US president Donald Trump has stated that the US will impose 25 percent tariffs on all products from Mexico and Canada, and 10 percent tariffs on products from China, as of January 20, 2025, when he takes office, according to media reports. These new tariffs will possibly increase costs for US consumers. Besides, since US imports of some products from Canada and Mexico are exempted from tariffs due to the free trade agreement between the United States, Mexico and Canada (USMCA), it is a matter of curiosity how Trump will implement the new tariffs without violating the agreement.
During his election campaign, he had already given signals of much higher import tariffs to support the recovery of the US steel industry. Trump claims continued tariffs on imported steel have netted billions of dollars for the US treasury, as SteelOrbis previously reported.
In addition, the US dollar gained strength on the back of Trump's new tariff plans, in particular rising to its highest level since July 30 against the Chinese yuan. Meanwhile, in recent days the dollar has weakened after Scott Bessent was appointed as US Treasury Secretary, causing government bonds to increase, resulting in pressure on the US dollar and causing it to weaken to $1 = CNY 7.24.
Besides, China seems to be avoiding US tariffs by moving its production to Mexico, which benefits from the USMCA, as SteelOrbis previously reported. In addition, the Chinese steel industry may be hit if Trump also implements 60 percent tariffs on Chinese manufacturing.goods made with steel.
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Vietnam Steel by Hoa Sen Group