Trump Announces Tariff Plans on Mexico, Canada, and China for Inauguration Day

Former President Donald Trump has vowed to impose significant tariffs on Mexico, Canada, and China immediately upon his return to the presidency, citing the need to address illegal immigration, drug smuggling, and trade imbalances.

Proposed Tariffs

Trump stated he would:

• Impose a 25% tariff on all goods imported from Mexico and Canada.
• Add an extra 10% tariff on goods from China, in addition to existing tariffs.

These measures, he said, aim to pressure trading partners to curb illegal activities, particularly the smuggling of fentanyl and other drugs into the United States.

The announcement could escalate tensions with the United States’ largest trading partners. Combined, Mexico, Canada, and China account for roughly 40% of the $3.2 trillion worth of goods imported annually by the U.S., making them critical players in global trade.

Economists warn that such tariffs may lead to higher costs for U.S. consumers, as tariffs function as taxes on imports, driving up prices for goods.

• Beijing defended its efforts to combat drug trafficking and warned against escalating trade tensions, emphasizing that a trade war would harm both nations.
• The country’s finance ministry highlighted its role as the U.S.’s top trading partner and reaffirmed its commitment to the U.S.-Mexico-Canada Agreement (USMCA), which provides trade certainty.
• Prime Minister Justin Trudeau reportedly discussed trade and border security with Trump following the announcement. A Canadian source described the conversation as a “good discussion.”

Trump, sharing his plans on his Truth Social platform, declared that the tariffs would remain in place until Mexico and Canada take decisive action to combat illegal drug trafficking and unauthorized border crossings. He also reaffirmed his goal to hold China accountable for fentanyl smuggling, a critical issue in the ongoing opioid crisis.