President-elect Donald Trump vowed on Monday to implement a 25% tariff on all products coming into the United States from Canada and Mexico, starting on his first day in office.
Trump says the move will be in retaliation for the “crime and drugs” coming across the both the northern and southern borders.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem,” Trump wrote on Truth Social.
Additionally, Trump also announced an additional 10% tariff on Chinese goods “above any additional Tariffs” until the flow of fentanyl is contained.
“I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail,” Trump wrote.
“Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America,” he added.
Tariffs are a tax on goods imported to the United States. Trump has repeatedly lied and said targeted foreign countries pay the tariffs, but they are actually paid by companies that purchase the imported goods — and the cost is usually passed onto American consumers — making the prices of those goods go up for the average buyer.
Trump’s announcement has already ignited fears of inflation and a trade war, which Trump had during his first term, where he imposed tariffs on foreign steel and aluminum — including from Canada and Mexico.
Most credible economists believe tariffs would cause inflation to rise and the Peterson Institute for International Economics has said they estimate Trump’s proposed tariffs would cost the typical American household over $2,600 a year.
