Trump’s Proposed Tariffs on Mexico and Canada Spark Concerns Over USMCA and Economic Fallout

President-elect Donald Trump's proposal to impose sweeping tariffs on imports from Mexico, Canada, and China aims to address critical issues like fentanyl trafficking and illegal immigration but has sparked controversy due to its potential economic and diplomatic repercussions. While Mexico and Canada face a threatened 25% tariff unless they enhance border security and drug control, critics argue this approach undermines the USMCA trade agreement, threatens North American economic integration, and could harm US industries dependent on cross-border supply chains. 

Lila Abed, Director of the Wilson Center's Mexico Institute, provides an overview of possible outcomes. She covers Mexico’s expected response to US tariffs, its cooperation on migration and drug trafficking, rising concerns over Chinese investment in Mexico, and how the upcoming 2026 USMCA review could be affected.