Mint Quick Edit | Trump’s non-trade tariff idea raises uncertainty

US President-elect Donald Trump is yet to take office, but he has been causing shudders around the world with what policies he might adopt.

On Tuesday, Trump put out a post on social media announcing that his administration would impose a 25% tariff on all goods imported from Mexico and Canada and an additional 10% on China as his first executive orders on 20 January when he assumes power.

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Tariffs are the first tool he is likely to exercise, but not as a trade measure.

Rather, these barriers would be punitive, meant to punish what he sees as the unchecked flow of illegal immigrants and drugs, particularly fentanyl, from across America’s land borders and the Pacific Ocean.

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Perhaps the idea is to force border-level compliance with US demands by threatening to levy charges for sending goods into the country.

That Trump would be ready to use trade barriers not just to protect the commercial interests of US businesses but also to tackle a domestic crisis of opioid addiction only heightens today’s uncertainty over how trade dynamics will shape up during his term.

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New Delhi may need to temper expectations of Trump being favourably disposed towards India.