President-elect Donald Trump attends a campaign event, in Allentown, Pennsylvania, U.S., October 29, 2024. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
November 25, 2024 (Reuters) – U.S. President-elect Donald Trump announced on Monday sweeping tariffs set to begin on his first day in office, January 20, 2025. He revealed plans for a 25% tariff on all imports from Mexico and Canada, and an additional 10% tariff on goods from China. Trump cited concerns over illegal immigration and the trafficking of illicit drugs, particularly fentanyl, as reasons for the bold economic measures.
In a Truth Social post, Trump declared, “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.” The president-elect emphasized that the tariffs would remain in place until Mexico and Canada take stronger actions against drug trafficking and unauthorized migration.
Trump also targeted China, accusing Beijing of failing to stop the flow of illegal drugs into the U.S., primarily through 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,” he wrote.
These measures mark a continuation of Trump’s confrontational trade policies. He previously suggested ending China’s most-favored-nation trading status and imposing tariffs exceeding 60% on Chinese imports. The additional tariffs aim to apply pressure amid China’s economic vulnerabilities, including its ongoing property downturn, rising debt risks, and sluggish domestic demand.
The immediate market response was significant. The U.S. dollar surged over 2% against the Mexican peso following the announcement. Meanwhile, there was no immediate comment from Mexico’s foreign or economy ministries. The Chinese embassy in Washington, as well as Canadian Prime Minister Justin Trudeau’s office, also did not respond to requests for statements.
These tariffs are expected to spark debate both domestically and internationally. While Trump’s supporters may view the measures as a strong stance to protect American interests, critics argue they risk escalating trade tensions and increasing consumer costs. The economic ripple effects are likely to dominate discussions as January approaches.
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