President Joe Biden expressed his hope that President-elect Donald Trump would reconsider his plan to impose tariffs on Mexico and Canada. Biden stated that he believes such a move would be counterproductive.

Trump had previously pledged to enact a 25% tariff on all Mexican and Canadian imports until the two countries took more action to address illegal drugs and immigration. He indicated that these tariffs would be among his first actions upon taking office.

Biden and Vice President Kamala Harris criticized Trump and his tariff threats throughout the 2024 campaign. Trump, however, never retreated from his protectionist policy, which represented a break from traditional GOP policy.

Biden emphasized that the United States cannot afford to alienate its two North American neighbors. He stated that the last thing the country needs is to damage those relationships.

It remains unclear what Trump will ultimately do. His first administration imposed various tariffs on US allies' imports, including on Mexican and Canadian steel and aluminum.

In May 2019, Trump threatened to impose a 5% tariff on all Mexican imports with the possibility of further escalation if the nation failed to take more action to stop illegal immigration. His threat briefly roiled financial markets, but such tariffs never materialized.

Mexico is currently taking steps to de-escalate the situation. Trump spoke with Mexican President Claudia Sheinbaum shortly after he made the new tariff threat. Both sides expressed satisfaction with the conversation.

Sheinbaum later clarified in a statement that she had not agreed to effectively close the border. She told reporters on Thursday that she was confident a trade war could be avoided.