WASHINGTON: President-elect Donald Trump has pledged to impose a 25% tariff on all products from Mexico, Canada, and China starting on his first day in office. He says the move is in response to illegal immigration and drug trafficking.
Trump stated that the tariffs will remain in place until the flow of fentanyl and illegal immigrants stops. He posted on Truth Social, “This Tariff will remain in effect until Drugs, particularly Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
Global Reactions
The Chinese Embassy rejected Trump’s claims, saying they are not allowing fentanyl precursors into the U.S. Canadian officials said they will continue discussions on border security and trade with the incoming administration.
Economic Impact
Experts warn that the tariffs could raise U.S. consumer costs by $272 billion a year. The Canadian dollar and the Mexican peso both dropped in response, though they recovered somewhat later.
U.S. Imports
The U.S. imports oil, cars, electronics, and machinery from Canada, Mexico, and China. The tariffs could raise prices on these goods and disrupt supply chains.
Possible Trade War
The tariffs may lead to retaliatory measures from Mexico, Canada, and China. This could hurt U.S. exports and deepen the trade war, affecting the economy.
Trump has suggested even higher tariffs in his second term, including 60% on Chinese goods. It remains unclear how these plans will affect trade agreements like the USMCA.
