President-elect Donald Trump said he will impose sweeping new tariffs on Mexico, Canada, and China as soon as he takes office as part of his effort to crack down on illegal immigration and drugs, the Associated Press reports. He said he would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders.
The tariffs, if implemented, could dramatically raise prices for American consumers on everything from gas to automobiles to agricultural products. The U.S. is the largest importer of goods in the world, with Mexico, China, and Canada its top three suppliers, according to the most recent U.S. Census data. The new taxes would also pose an enormous challenge for the economies of Canada and Mexico.
Trump made the statements on Monday in a pair of posts on his Truth Social site.
The tariffs would also throw into doubt the reliability of the 2020 trade deal brokered in large part by Trump with Canada and Mexico, the USMCA, which replaced NAFTA and is up for review in 2026.
It’s unclear from Trump’s social media post how he would legally apply tariff hikes on those two pivotal U.S. trade partners, but the 2020 deal allows for national security exceptions.
