In US, President-elect Donald Trump has announced plans to impose sweeping tariffs on key US trading partners, pledging a 25 percent tariff on goods from Mexico and Canada and 10 percent tariff on Chinese imports.

In a social media post yesterday, Trump stated that the measures, set to be enacted via executive orders on January 20, target illegal drug smuggling, immigration issues, and trade imbalances.

In another social media post later, he said that he would also to impose China with a 10 percent tariff, above any additional Tariffs on all of its products entering the US in response to its failure to tackle fentanyl smuggling. 

Meanwhile Economists warn the tariffs could drive up inflation and hurt economic growth, as importers often pass costs to consumers. However, Trump’s team views the tariffs as leverage to secure better trade terms and boost domestic manufacturing.