Trump Vows Day-One Tariffs On Canada, Mexico & China

President-elect Donald Trump declared intentions to enforce high tariffs on important trading partners, including Canada, Mexico, and China, as soon as he assumes office on January 20, 2025. Trump presented the tariffs as tools to tackle illegal drug trafficking and unauthorized immigration, problems he argues are not being effectively dealt with by these countries.

Trump promised to impose a 25% tax on all goods brought in from Mexico and Canada on his Truth Social site. He stated that the tariffs would continue until the prevention of fentanyl and other drugs trafficking, and illegal border crossings. Mexico and Canada both have the full authority and capability to address this issue. Until they take action, it is necessary for them to face a significant consequence,” he declared.

China was also criticized, as Trump vowed to impose a further 10% tariff on Chinese imports. He condemned Beijing for not meeting its promise to enforce strict penalties, such as the death penalty, on drug dealers. Trump claimed that there were record levels of drugs coming into the U.S. mostly from Mexico, and criticized both China and Mexico for not doing enough to deal with the problem.

Throughout his campaign, Trump suggested imposing tariffs between 60% and 100% on Chinese merchandise and implementing taxes ranging from 10% to 20% on goods from every U.S. trade ally.

Echoing these sentiments at a Pittsburgh rally on the eve of the election, he declared, “Every damn thing that [Mexico] sells into the United States has got to have a 25% tariff until they stop drugs from coming in.”

While Trump’s tariff strategy is designed to pressure U.S. trading partners, critics argue it risks economic disruption. Economists caution that such tariffs could significantly increase consumer prices in the U.S., with importers passing on the costs. According to the Peterson Institute for International Economics, the proposed measures could cost the average U.S. household an estimated $2,600 annually.

Raymond Robertson, a trade and economics expert at Texas A&M University, sees the tariffs as a calculated move to pressure Canada, Mexico, and China. However, he warns that the approach may have diminishing returns, likening it to reusing a predictable strategy on the football field. “Countries understand the playbook now. This could push them to strengthen trade ties with Europe and other markets, reducing reliance on the U.S. and leading to higher prices domestically,” Robertson added.

Trump’s aggressive tariff plans signal a continuation of his combative trade policies, raising concerns about their potential economic fallout and impact on U.S. global trade relations.