WTO Warns of Potential 80% Drop in US-China Trade Amid Rising Tensions

US President Donald Trump announced on January 31, 2025, that he will proceed with a 25% tariff on imports from Canada and Mexico, effective February 1. The tariffs, described as border taxes, are part of Trump's strategy to address issues related to undocumented migration and the fentanyl crisis, as well as significant trade deficits with these neighboring countries.
During a press conference in the Oval Office, Trump revealed that he has yet to decide whether oil imports from Canada and Mexico will be affected by these tariffs. Additionally, he hinted at the possibility of implementing a 10% tariff on China in the near future, although specific details were not provided.
This move has raised concerns among trade experts regarding potential escalations in tensions with both countries. Trump’s administration has emphasized that the tariffs are necessary to protect US economic interests while tackling national security issues, according to officials.