WEST PALM BEACH, FLORIDA - NOVEMBER 06: Republican presidential nominee, former U.S. President Donald Trump arrives to speak during an election night event at the Palm Beach Convention Center on November 06, 2024 in West Palm Beach, Florida. Americans cast their ballots today in the presidential race between Republican nominee former President Donald Trump and Vice President Kamala Harris, as well as multiple state elections that will determine the balance of power in Congress. (Photo by Chip Somodevilla/Getty Images)
President-elect Donald Trump vowed last week to impose tariffs of 25 percent on Mexico and Canada as soon as he takes office, ostensibly to crack down on illegal migration and fentanyl snuggling to the U.S.
On Truth Social, Trump wrote, “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 didn’t specify how he’d impose this tax, but he could use the International Emergency Economic Powers Act. This act grants a president sweeping authority to control economic transactions once an emergency is declared, which would open up Trump’s tariffs to legal challenges.
Mexican diplomat Arturo Sarakhan said Trump’s decision would violate the trade pact between the U.S., Canada and Mexico (the USMCA), signed in Trump’s first term and would send North American relations in a downward spiral.
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Canadian officials echoed Trump’s concerns regarding Mexico’s role as a backchannel for China into the North American market.
Mexico’s President Claudia Sheinbaum deflected questions on the topic during a recent meeting with Canadian Prime Minister Justin Trudeau.
Trump said China reneged on a promise to give the death penalty to traffickers of fentanyl.
In addition to the tariffs on Mexico and Canada, Trump wants to tax China an additional 10%. This would be in addition to Trump’s universal baseline of 20% tariffs and 60% on Chinese imports.
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