An expert explains that Trump's tariff threats extend beyond a trade agreement to promote American interests.

According to one expert, President-elect Trump's plans to impose a 25% tariff on all imports from Canada and Mexico are largely a diplomatic move that will leverage U.S. interests, drawing on his "war chest."

Import taxes, also known as tariffs, are government-imposed fees on goods brought in or sent out. By increasing the price of imported goods, tariffs make domestic products more appealing to consumers.

According to Andrew Hale, Heritage Foundation's senior policy analyst, President Trump has successfully utilized tariffs in the past and is likely to employ them strategically in specific areas, even if they are not directly linked to trade.

Trump's tariffs have been used not only to address trade imbalances but also to tackle issues such as border security and drug trafficking, according to Hale. Trump has consistently applied these tariffs in areas beyond trade imbalances, using them as diplomatic tools to advance "America First" policies, Hale stated.

Trump's return has led to a resurgence of U.S. leadership on the world stage, something the Biden administration has been hesitant to do, and both allies and adversaries have taken notice of this, according to the speaker.

If Trump's tariff proposals are implemented, Mexico and Canada may challenge them under the USMCA, but Hale believes it unlikely to reach that stage as such measures have previously been effective in achieving US goals. Hale also speculates that Trump could use tariffs as leverage in other contexts, such as targeting countries that act against US allies like Israel.

He stated that it wouldn't progress that far since it has already been effective.

In his first term, Trump replaced the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA), which took effect in July 2020. The USMCA aimed to modernize and address issues in the original NAFTA, particularly concerning labor rights, environmental standards, and digital trade.

Trump announced that he would inform Mexican President Claudia Sheinbaum on day one or sooner that if the criminals and drugs continue to enter the country, he would impose a 25% tariff on everything they send to the United States of America.

Trump's use of tariffs during the USMCA renegotiation with Canada and Mexico has shown their effectiveness as a diplomatic tool, as Trump has criticized the nations over trade imbalances and issues like drug trafficking as justifications for the tariffs.

Hale stated that the Biden administration has not been enforcing the USMCA properly because Mexico has been breaching it.

Experts and some politicians caution that the tariffs intended to bolster U.S. manufacturing may disrupt supply chains, hike costs for businesses that rely on foreign goods, and prompt trading partners to retaliate, negatively affecting American exporters.

Gov. Gavin Newsom of California criticized Trump's tax proposal, stating it as one of the largest tax hikes in U.S. history on Thursday.

"You are being betrayed by these policies," Newsom said.

In 2018 and 2019, the Trump administration imposed $80 billion worth of new taxes on Americans through tariffs on $380 billion worth of products.

The Biden administration maintained the existing tariffs and imposed additional taxes on $18 billion worth of Chinese goods.

Mike Pence, the former Vice President, endorsed Trump's tariffs but advised a cautious approach to maintain a harmonious relationship with China.

"I sincerely hope that his proposed tariffs will lead China back to the negotiating table, as it did during our administration. Although it may be challenging in the short-term, it will ultimately benefit both countries in the long-term," Pence stated this week. "Our goal is to improve relations between America and China, and I believe a firm but fair approach is the key to achieving that."

Sources told Planet Chronicle that Trump recently proposed to Canadian Prime Minister Justin Trudeau that if a tariff for failing to address trade and immigration issues would harm Canada's economy, perhaps it should become the 51st state.

According to sources, Trump's tone became more intense when discussing the U.S. trade deficit with Canada, which he believed exceeded $100 billion.

This report was contributed to by Caitlin McFall, Greg Wehner, and Bret Baier of Planet Chronicle Digital.