President-elect Donald Trump on Monday said his incoming administration would impose new tariffs on imports from Mexico, Canada and China, cementing a key campaign promise that could have a major impact on trade.
In a post on Truth Social, Trump said he plans to impose a 25% tariff on imports from Mexico and Canada, framing the proposal as a response to the ongoing fentanyl crisis.
“On January 20th, in one of my first of many Executive Orders, I will sign all the necessary documents to impose a 25% Tariff on ALL goods entering the US and its ridiculous Open Borders from Mexico and Canada,” Trump wrote. “This Tariff will remain in effect until we stop this invasion of Drugs, especially Fentanyl and all Illegal Aliens!”
Trump said he would try to impose additional tariffs on China.
“I have had many negotiations with China regarding the large amount of drugs being sent to the United States, especially Fentanyl – to no avail,” Trump wrote. “Until they stop, we will impose a 10% tariff on top of the additional tariffs on all products from China coming into the United States.”
Mexico and Canada are the two main trading partners of the United States, accounting for about 30% of the trade volume. The automotive manufacturing industry, dairy products, paper products and construction materials such as wood are just some of the products that will face disruption.
The Canadian, Chinese and Mexican embassies did not immediately respond to requests for comment Monday night.
USA and China held high-level negotiations An effort to restore drug cooperation after the fentanyl crisis this year President Joe Biden and Chinese President Xi Jinping Met in California last year. Biden announced that he would do the same increase the tariff rate He said that he will raise tariffs for electric cars from 25% to 100% this year in May for various goods from China.
During the election campaign, Trump said that he would impose a 20% additional duty on all imported goods and at least 60% Chinese products.
Trump’s tariffs during a presidential debate with then-Democratic candidate Kamala Harris “Sales Tax for the American People” Trump dismissed the proposed tariffs as a form of payback.
It is likely to receive a portion of any proposed fares push back from businesses and on Capitol Hill, as This was previously reported by NBC News.
Economists and retail trade groups estimate that tariffs on U.S. goods could cost Americans as much as $78 billion annually. For example, a $50 pair of shoes might cost around $65 National Retail Federation. A $2,000 mattress may increase in price by $190. Retail chain Five Below, online retailer Wayfair and Dollar Tree are some of the most vulnerable stores in the trade war, according to a CNBC analysis.
“Other countries will finally pay us back after 75 years for what we’ve done to the world, and the tariff will be significant,” Trump said in a presidential debate against Harris in September.
Trump’s tariffs would add to one of the biggest economic deals of his first term.
US-Mexico-Canada Agreement, Also known as USMCAIt was discussed during the first Trump administration and entered into force in July 2020. Trump’s proposed tariffs in social media posts would likely violate the pact. Arturo Sarujan, former Mexican ambassador to the United States
Nnamdi Egwuonwu and Vaughn Hillyard contributed.