Trump promises specific tariffs on China, Canada and Mexico

President-elect Donald Trump said on Monday he will issue executive orders imposing new tariffs on all imported goods from China, Mexico and Canada, the nation’s three largest trading partners, as one of his first acts on Inauguration Day.

Trump said the tariffs of 25 percent on Mexican and Canadian goods and 10 percent on Chinese merchandise would be aimed at halting an “invasion” of drugs and migrants into the United States.

“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. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!”

Trump wrote in a post on Truth Social, his social media site.

In a second post, Trump blasted Chinese leaders for not following through on earlier promises to impose the death penalty on fentanyl producers in China.

Monday’s social media posts represent Trump’s most detailed comments on his tariff plans since his election victory earlier this month.

He said that on Jan. 20, he will sign “all necessary documents” to impose the import taxes.

U.S. retailers have already begun pricing increases, including AUTOZONE.

During the campaign, he vowed to impose tariffs of up to 60 percent on Chinese imports, plus a 10 to 20 percent levy on products from other countries.

John Veroneau, a former trade negotiator under President George W. Bush, said the announced tariffs would violate U.S. trade commitments.

Under the United States-Mexico-Canada Agreement (USMCA), which took effect in 2020, goods moving among the three North American nations cross borders on a duty-free basis.

“Obviously, unilaterally imposing a 25 percent tariff on all trade blows up the agreement,” said Veroneau, a partner at Covington & Burling in Washington.

Each country affected by the president-elect’s plans is likely to retaliate with tariffs on U.S. goods, which will hurt exporters, he said.

USMCA replaced the North American Free Trade Agreement, which Trump criticized during his first presidential campaign.

Trump publicly hailed the new accord on several occasions, boasting that it represented an enormous improvement over the original trade pact.

“The USMCA is the fairest, most balanced, and beneficial trade agreement we have ever signed into law. It’s the best agreement we’ve ever made,” he said in January 2020.