Trump pledges tariffs against Mexico, Canada and China on first day in office
President-elect Donald Trump announced the taxes on goods from Mexico, Canada and China, which many economists warn could raise prices for American consumers.
President-elect Donald Trump announced the taxes on goods from Mexico, Canada and China, which many economists warn could raise prices for American consumers.
President-elect Donald Trump announced the taxes on goods from Mexico, Canada and China, which many economists warn could raise prices for American consumers.
President-elect Donald Trump announced plans to impose new tariffs on goods from Mexico, Canada and China on his first day in office.
In a pair of social media posts, Trump said he'd take executive action, imposing a 25% tax on all products entering the U.S. from Mexico and Canada and another 10% on goods from China.
But economists say that American consumers will ultimately pay the price for the tariffs, dramatically raising costs on everything from gas to cars and agriculture.
The U.S. is the largest importer of goods in the world, with Mexico, Canada and China as its top three suppliers, according to U.S. Census data.
But Trump reasoned that the move would help crack down on illegal immigration and drug trafficking. He added that the tariffs would remain in place until drugs and the influx of border crossings stop, though southern border arrests have reached a record four-year low.
The tariffs pose an enormous challenge to Canada and Mexico's economies. On Monday, the Canadian dollar weakened sharply immediately after Trump's post.
Meanwhile, a Chinese embassy spokesperson warned Trump's actions could spark a trade war where there would be "losers on all sides."
When Trump took the same action during his first term in office, other countries responded with retaliatory tariffs, which economists say, in turn, raised prices and did more harm than good to U.S. consumers.