Trump To ‘Sharply Increase’ Tariffs On Goods Coming From China, Canada & Mexico
The President-elect said that China is going to face higher tariffs on its goods which will be 10% higher than any existing tariffs, until China controls its flow of illegal drugs into the US.
Starting from his first day in office President-elect Donald Trump has promised to raise the tariffs on goods from Mexico, Canada and China. A policy that could sharply increase costs for American businesses and consumers.
Trump said that this move is in retaliation for illegal immigration and “crime and drugs” coming from across the 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,” Trump posted on his Truth Social platform. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
The President-elect said that China is going to face higher tariffs on its goods which will be 10% higher than any existing tariffs, until China controls its flow of illegal drugs into the US. “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 posted on Truth Social.
According to CNN, the president-elect claimed in the post that Chinese officials had promised to execute drug dealers caught funnelling drugs into the US but never “followed through”.
In response to Trump’s announcement, Chinese Embassy spokesperson Liu Pengyu said that his country has been in communication with the US about counternarcotics operations and that “the idea of China knowingly allowing fentanyl precursors to flow into the United States runs completely counter to facts and reality.”
“About the issue of US tariffs on China, China believes that China-US economic and trade cooperation is mutually beneficial in nature. No one will win a trade war or a tariff war,” Liu said in a statement to CNN.
The punishing tariffs, if enacted, could wreak havoc on America’s supply chains and industries reliant on goods from the country’s closest trading partners.
“The measures proposed this evening could hit a number of strategic US industrial sectors hard, add approximately $272 billion a year to tax burdens, raise goods prices, lift interest rates, and sap strength in an already-vulnerable household sector,” said Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions.
After the announcement, the Canadian dollar fell 1.2% against the US dollar, and the Mexican peso fell 2% against the dollar. China’s yuan, though controlled by the government, traded higher – above 7.6% – in offshore markets.
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