The imposition of tariffs by the United States has become a significant factor in international trade relations, particularly impacting countries like Canada, Mexico, and China. This fact sheet addresses the context of these tariffs, focusing on the situation with Mexico and the implications for the President Of Mexico and the broader relationship between the two nations.
National Emergency and Border Security
The United States government has declared a national emergency concerning the influx of illegal immigration and the trafficking of illicit drugs, especially fentanyl. Under the International Emergency Economic Powers Act (IEEPA), this declaration has paved the way for the implementation of tariffs as a tool to address these issues. Initially, this involved a proposed 25% tariff on imports from both Canada and Mexico, alongside a 10% tariff on imports from China. Energy resources from Canada were considered for a lower 10% tariff rate.
This action was presented as a direct response to what the U.S. government perceived as unfulfilled promises from Mexico, Canada, and China to effectively curb illegal immigration and the flow of dangerous drugs like fentanyl into the United States. The focus was particularly sharp on Mexico, with accusations that the Mexican government was not doing enough to dismantle drug cartels and prevent the movement of narcotics across the border.
The U.S. government stated that the flow of fentanyl and related substances constituted a public health crisis and national emergency. Furthermore, there were accusations that Chinese officials had failed to prevent the flow of precursor chemicals used in fentanyl production and had not adequately addressed money laundering by transnational criminal organizations. The situation with Mexico was described as particularly concerning due to alleged alliances between Mexican drug cartels and elements within the Mexican government, claiming that these cartels operated with impunity, manufacturing and transporting narcotics that contributed to a significant number of overdose deaths in the United States. The presence of Mexican cartels involved in fentanyl and nitazene production in Canada was also cited as a growing concern.
Leveraging Trade for National Security
The United States emphasized its economic leverage as a crucial instrument in securing its borders and combating the drug crisis. It was argued that previous administrations had not fully utilized this leverage, allowing these problems to escalate. Access to the U.S. market was positioned as a privilege, highlighting the U.S. as having one of the most open economies globally with relatively low average tariff rates.
The fact sheet pointed out the significant reliance of Canada (67% of GDP), Mexico (73% of GDP), and China (37% of GDP) on trade compared to the United States (24% of GDP). Despite this lower percentage, the U.S. was noted to have the largest trade deficit in goods globally in 2023, exceeding $1 trillion. Tariffs were presented as a proven and potent tool to protect national interests, with the current administration asserting its commitment to prioritizing American safety and national security. The document contrasted the current approach with previous administrations, claiming a departure from what was perceived as a failure to use America’s economic strength to advance security interests.
President Trump’s Commitment: Border Security and Drug Control
The imposition of tariffs was framed as a fulfillment of campaign promises to secure the border and address illegal immigration and drug trafficking. The document directly linked the tariffs to the mandate given to President Trump by voters to “seal the border.”
The policies of the Biden administration were criticized for allegedly fueling a border crisis, with statistics cited indicating over 10 million illegal alien encounters, including increases in Chinese nationals and individuals on terror watchlists. The issue was presented as extending beyond the southern border, with rising encounters at the northern border with Canada also highlighted. The consequences of illegal immigration were described as wide-ranging and detrimental, impacting schools, wages, housing, healthcare, social welfare systems, and crime rates. The document emphasized the influx of gang members, smugglers, human traffickers, and drugs, including fentanyl. Statistics were provided on fentanyl seizures by Customs and Border Protection (CBP), claiming seizures of over 21,000 pounds in the last fiscal year, theoretically enough to cause billions of deaths. The document acknowledged that this was likely only a fraction of the total fentanyl smuggled across the border. The severe impact of these drugs was underscored by stating that tens of thousands of Americans die annually, with 75,000 deaths attributed to fentanyl alone, exceeding American deaths in the Vietnam War.
Building on Trade Policy Precedent
The fact sheet positioned the tariff actions as consistent with a broader commitment to using trade policy to serve national interests. It referenced a Presidential Memorandum on American First Trade Policy, emphasizing the link between trade policy and national security.
A specific quote from President Trump was included, referencing a promise to impose a 25% tariff on all products from Mexico and Canada until illegal immigration and drug flows were stopped. The document also mentioned previous actions taken during President Trump’s first term, such as establishing the President’s Commission on Combating Drug Addiction and the Opioid Crisis, declaring the opioid crisis a public health emergency, and using tariff threats against Mexico to enhance border security. Tariffs on steel and aluminum imports were cited as examples of protecting national security in response to global oversupply. Furthermore, tariffs against China were mentioned as a response to intellectual property theft and forced technology transfer, used as leverage to achieve a bilateral economic agreement. The resolution of national security concerns with Colombia through tariffs was also presented as a recent success, prioritizing American safety and border security.
This fact sheet provides a perspective on the use of tariffs, particularly concerning Mexico, within the framework of U.S. national security and trade policy under the Trump administration. It highlights the tensions and complex relationships between the U.S. and its trade partners, especially concerning issues of border security, drug trafficking, and trade imbalances.
