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President-elect Donald Trump has announced plans to impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on China.
"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 wrote on Truth Social. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
In a separate post, Trump spoke about his plans to add tariffs on Chinese goods.
"Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. 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."
Bill Ackman, the chief executive of the hedge fund Pershing Square Capital Management, said Trump is going to use tariffs as a foreign policy "weapon" to "achieve economic and political outcomes."
Chinese officials responded to the potential tariffs, with Chinese Embassy Spokesperson Liu Pengyu warning that "nobody will win in a trade war."
Critics of the tariffs have said that they are a regressive tactic that will increase prices for American consumers. Canada, Mexico, and China account for about 40% of the goods the U.S. imports each year. According to NBC News, the tariffs could cost Americans about $78 billion a year in added costs.