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Trump Fires Salvo on North American Trade Pact

President-elect signals intention to upend USMCA, wring concessions on immigration and fentanyl

President-elect Donald Trump vowed on the campaign trail to lower inflation. WSJ asked a former Federal Reserve vice chair to break down the inflation-fighting tools Trump will have at his disposal. Photo Illustration: Ryan Trefes, Annie Zhao

Donald Trump’s new tariff pledges send a clear signal that he wants to rewrite the terms of North America’s free-trade pact and follow through with plans to hit China with tariffs, demonstrating to allies and adversaries alike that he is serious about renewing confrontation over a global trading system that he believes costs the U.S. dearly.

On his Truth Social social-media platform on Monday, Trump said he would levy tariffs of 25% on imports of all goods from Mexico and Canada, accusing both countries of facilitating illegal immigration and fentanyl abuse in the U.S. The Mexican peso fell 1.4% against the dollar in Asian trading Tuesday, while the Canadian dollar lost 1%.

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