Trump plans tariffs on Canada, China and Mexico on Day 1

President-elect Donald Trump said on Monday that he would impose import tariffs on all three of the United States’ largest trading partners on his first day in office on Jan. 20.

The measures would include 25% tariffs on all products coming into the U.S. from Canada and Mexico, as well as an additional 10% tariff on all goods originating from China.

The tariffs against Canada and Mexico, which could be in violation of the United States-Mexico-Canada Agreement trade pact, is aimed at stopping drugs and illegal migrants from crossing into the U.S., Trump said.

“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” Trump wrote in a post on Truth Social. “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 said fentanyl from China is also being smuggled into the U.S. and the additional 10% tariffs are aimed at spurring Chinese officials to stop the flow of drugs.

“I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States …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,” Trump wrote.

Mexican President Claudia Sheinbaum said Trump’s threats to impose tariffs could generate inflation and job losses in both countries. Sheinbaum plans to send an official letter to Trump requesting cooperation instead of tariffs.

“It is not with threats or tariffs that we will address the migration phenomenon, nor drug consumption in the United States. Cooperation and mutual understanding are required in the face of these great challenges. Even with the tariff, another will come in response and so on until we put common enterprises at risk,” Sheinbaum said Tuesday during a news conference.

Sheinbaum also said Mexican authorities enacted migrant policies in the past several years that have dramatically reduced border crossings between the U.S. and Mexico.

From December 2023 to August 2024, migrant crossings at the Mexican border have fallen 76%, from 249,741 to 58,038, according to data from the U.S. Customs and Border Protection.

Mexico is currently the top U.S. trading partner. Trade between the two countries totaled $72.5 billion in September, an increase of 8% year over year compared to the same month last year, according to the latest data from the Census Bureau.

Canada ranked No. 2 for trade with the U.S. at $63.8 billion in September, while China was third at $54.3 billion.

Officials in Canada also said tariffs could be harmful to their economy.

“A 25 percent tariff would be devastating to workers and jobs in both Canada and the U.S.,” Doug Ford, premier of Canada’s largest province, Ontario, posted on X. “The federal government needs to take the situation at our border seriously. We need a Team Canada approach and response—and we need it now. Prime Minister Trudeau must call an urgent meeting with all premiers.”