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U.S. President-elect Donald Trump on Monday pledged a 25% tariff on all products from Mexico and Canada from his first day in office, and an additional 10% tariff on goods from China, citing illegal immigration and the trade of illicit drugs.
"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," Trump said in a post on Truth Social.
Trump said the tariffs would remain in place until the two countries clamp down on drugs, particularly fentanyl, and migrants crossing the border illegally.
Trump's threatened new tariff would appear to violate the terms of the U.S.-Mexico-Canada Agreement on trade, which Trump signed into law and took effect in 2020, and continued the largely duty-free trade between the three countries.
Mexico and Canada are the United States' largest trading partners. More than 83% of exports from Mexico went to the U.S. in 2023 and 75% of Canadian exports go to the country.
Canada and the United States at one point imposed sanctions on each others' products during the rancorous talks that eventually led to USMCA.
On China, the president-elect accused Beijing of not taking strong enough action to stop the flow of illicit drugs crossing the border into the U.S. from Mexico.
"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," Trump said.
The Chinese embassy in Washington, the office of Canadian Prime Minister Justin Trudeau and the Canadian foreign ministry did not immediately respond to separate requests for comment.
Mexico's foreign ministry and its economy ministry did not have an immediate comment when contacted by Reuters.
Trump has previously pledged to end China's most-favored-nation trading status and slap tariffs on Chinese imports in excess of 60% - much higher than those imposed during his first term.
The Chinese economy is now in a much more vulnerable position given the country's prolonged property downturn, debt risks and weak domestic demand.
The dollar rose more than 2% against the Mexican peso and jumped 1% on the Canadian dollar after Trump posted on his social media platform. Japan's Nikkei fell 1% and U.S. stock futures dropped 0.3%.
In the run-up to the Nov. 5 election, Trump floated plans for blanket tariffs of 10% to 20% on virtually all imports. He also said he would put tariffs as high as 200% on every car coming across the U.S.-Mexico border.
He also voiced his intent to formally invoke the USMCA's six-year review provision upon taking office. Currently, it is expected in July 2026.
Economists say that Trump's overall tariff plans, likely his most consequential economic policy, would push U.S. import duty rates back up to 1930s-era levels, stoke inflation, collapse U.S.-China trade, draw retaliation and drastically reorder supply chains.
They say tariffs are paid by the companies that import the products subject to the duties, and they either pass on the costs to consumers or accept lower profits.
Trump frequently refers to countries paying as a consequence of his tariff plan, saying on Monday that Mexico and Canada will "pay a very big price."
© Thomson Reuters 2024.
37 Comments
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Pieter Reyneke
The Trump import tax policy should be applied in reverse to all American companies.
An international trade pack, excluding the US, should stipulate that American companies must make substantial investments in the countries they trade with, and it should be as a percentage of market share, profit, and other factors. If these companies are not creating jobs and have a total net positive impact, inclusive of job creation and taxes paid, a special tax must be levied on them.
China should also be punished for the subsidies it gives to business and distorting international trade.
A creative solution should be found to punish the nations that interfere in international trade in an unfair manner.
deanzaZZR
How it is accepted that the Office of the President has such sweeping powers is simply bonkers. Congress should play the largest role in business and commerce.
Article 1 of the USA Constitution, Section 8
Peter Neil
madness.
an anarchist bent on destroying the united states.
first you destroy the economy with massive inflation and shortages in food and kill the construction industry.
then you tell the people that someone else is to blame for their troubles.
then you tell them that you’re the only one to save them from their misery and need more power.
wave the flag, tell them god told you to save them.
make the 1% more powerful, more rich and surround yourself with them.
let them eat cake.
ArtistAtLarge
Exactly, deanzaZZR. But Republicans view the Constitution as mere suggestions at best (when it suits them) and as an impediment most of the time.
KnightsOfCydonia
surely the plebs realize that a tariff will simply be passed on to the consumers. A bunch of billionaires claiming they are going to reduce government wastage should cause alarm bells to ring, instead the plebs are cheering.
Sayonara american middle class, it was good while it lasted.
Wasabi
Blacklabel, stay on the subject.
And I agree that all country should and will impose the same, or more, customs taxes on all products coming from the US. We will see who will lose at this game.
Once the average Joe understand what trump is doing, it will be too late for the US to recover.
Tokyo Guy
I can just see the scene: shooting-guns-into-the-air parties in the red states, whoops and hollers everywhere. Then the quiet voice is heard..."hey, what is a tariff anyway?"
bass4funk
The Stock Market doesn't think so.
https://x.com/johnyboy1853/status/1857864314784194829
That is exactly why people voted for Trump because of the massive food shortages
This admin has blamed Trump for everything except the weather.
He has both Houses and the Presidency.
You want the rich to have money, they provide jobs and pay me a great salary so that I can have a good life.
Tastes so good.
deanzaZZR
LOL. USA USA USA!
Sayonara NAFTA
nishikat
Trump people: Japan has zero tariffs. Enjoy cheap shopping in Japan for all including Trump people
Tokyo Guy
surely the plebs realize that a tariff will simply be passed on to the consumers.
Plebs are plebs for a reason. When prices shoot up as the costs are passed on to them, they'll wonder why. Then you tell them that it was because of the tariffs, and they won't believe you anyway, and will make up some other entity to blame. Maybe wokeness, libs, or whatever the scapegoat du jour is.
Wasabi
This is just temporary, tax are not good for business anyone knows it (expect trump as his work is bankrupt company like a casino, university, steak, etc... )
ok1517
Oh well, there go cheap avocados, cheap(er) cars, melons, nuts, electrical / electronic equipment, machinery, to name just the top ranking ones.
$459 billion worth of imports from Mexico alone! Expect to pay $5 for one avocado, 25 to 30% more for a car, and I don't even wan to go down on the whole list.
But MAGA freaks and others like them trust Trump's math (besides other stuff), thinking the exporting countries will pay for that. NO, my friends, the end-consumer will have to carry the bill!!
Oh, and just wait until he starts with his mass-deportations, farm workers, construction workers and others! Donald Nero should be his name, because he is burning down the USA the way we knew it right in front of our eyes!
Jind
None of the countries-imposed tariffs will hurt.
It is the USA consumers who will have to pay more for goods, and some may do without them as goods become unaffordable by tariffs.
Will Trump hand out cash to Seniors and low-income residents to just survive?
dobre vam zajebava
ok1514
why to worry as long as Ukraine prevails...mango for 10bucks even no problemo pendejo...
wallace
Mexico and Canada are the US's largest trading partners with trade agreements.
Xamo
The threatened tariffs aren't going to be necessary against Mexico, with their new President Sheinbaum signaling that she will comply with Trump's request.
The U.S. advantage is that it has a massive internal market and abundant natural resources. Countries that based their economies on exports, and freedom of navigation on the seas thanks to U.S. Navy protection, are going to find it more challenging as globalism retreats.
quercetum
China is trying to flee from the responsibility of taking care of the U.S. southern border. If they don’t take care of this, let’s add another 25% for the homeless problem in US cities.
Stop buying fentanyl from China.
quercetum
Chinese products via Mehiko to circumvent tariffs.
quercetum
Boo hoo, you have to pay a little more for an avocado. Life must be tough.
Take one for the team. You don’t want to make America great again?
iron man
Maybe he is one of the few US people that realize that the workers of alllother countries to be tariffed are intrinsically more productive than US workers... so US workers have to bear the cost of the tarriffs, I reckon some investment from the 1% of US is needed to go back down the ladder. or is that too CCP???
dobre vam zajebava
well if someone believes that affected countries will do nothing about it...
A creative solution should be found to punish the nations that interfere in international trade in an unfair manner.
Klin sa klinom vybija.
bass4funk
Well, the Stock Market has a lot of faith in him and his economic team.
Yes!
Biden burned it down already, Trump is Carnegie trying to rebuild the nation.
quercetum
That’ too much like the CCP distributing wealth. You a Communist?
Peter Neil
everyone learned in economics knows the stock market is not the economy.
Mocheake
It's the beginning of the end. The snake oil salesman returns selling phony cures, promises and dreams to the misinformed masses A nightmare is what's ahead.
Nibek32
Total bad trump got his degree from trump university and doesn’t know how business works.
Americans will be the ones paying for the costs associated with that tax, get ready for sky high prices.
ok1517
@dobre vam zajebava
complete fail due to being off-topic!
But to satisfy your obvious needs:
Ukraine prevails! (1007 days against that "great" Russian army already)
nishikat
Trump people (living in Japan with no tariffs). Who pays for the tariffs? I'm in Japan, so I don't care.
dutch
and?
nishikat
Japan has no tariffs from these countries and Trump people living in Japan are fine with that with the lower prices.
ok1517
Peter,
quite obviously some people don't know that, besides a couple of other things!
"Well, the Stock Market has a lot of faith in him and his economic team." (bass)
"Biden burned it down already, Trump is **Carnegie trying to rebuild the nation."**
By instigating, insulting, dividing, and selecting the worst for his "cabinet"!
@quercetum
"You don’t want to make America great again?"
It won't happen, not with Donald being POTUS! It was great after him, great when he was absent and will be great again once he is gone!
Just some points concerning President Biden's term achievements and "other stuff":
GDP rose 12.6 percent
economic growth in the US has far outpaced that of peer nations.
Trump’s term ended with an overall loss of 2.7 million jobs nationally.
About 6.5 million jobs have been added during the Biden administration.
Wages have gone up by an average of 15%.
And the list continues if you trust in unbiased surveys and reporting!
Stewart Gale
Bass4funk, you’re certainly a real Trump fanboy.
Every time I look at a story about him on this website, you’re taking great time picking other comments apart defending your hero.
Stewart Gale
And judging by all the down votes every comment you make gets, it doesn’t seem like many people agree with you.
wallace
dutch
Mexico and Canada are the US's largest trading partners with trade agreements.
You do not introduce tariffs on countries with trade agreements with the US.
dutch
I estimate a full 80% of posters on this site are leftists.
The downvotes on anything political are a sign you are saying something right.
funkymofo
23 Nobel prize winning economists say trump’s tariff plans mean higher prices, higher inflation and a larger deficit. He doesn’t understand what he’s doing, clueless.
dutch
The issue at hand are tariffs the US will levy against Mexico and Canada. Not Japan.
It appears Wallace has uncovered some rule of law that forbids the United States from levying tariffs.
I think the world should be aware of this unexplained law.
Tokyo Guy
I estimate a full 80% of posters on this site are leftists.
That tracks. Most people need a college degree to get a visa for Japan. Democrats / people in blue states are generally significantly more educated than republicans / people in red states.
So your estimation may be accurate, but hardly says anything revolutionary and is not the insult you clearly intend it to be.