WASHINGTON — Donald Trump says he will sign an executive order imposing a 25% tariff on all products coming in to the United States from Canada and Mexico.
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The president-elect posted to Truth Social on Monday that the duties will be among his actions on his first day back in the White House on Jan. 20’s Inauguration Day.
Trump’s announcement of the tariff plan described border security concerns with the two countries.
“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” the Republican posted.
Trump said the tariff will remain in place until both countries stop drugs, in particular fentanyl, and people from illegally crossing the borders. He said until those issues are solved Canada and Mexico will “pay a very big price!”
Trump campaigned on the promise to slap an across-the-board tariff on all imports.
It has caused significant concern, with a Canadian Chamber of Commerce report suggesting a 10%t tariff could take a $30-billion bite out of the Canadian economy.
More than 77% of Canadian exports go to the U.S. and trade comprises 60%t of Canada’s gross domestic product.
The tariffs would also cause a major shakeup to the American economy and it’s unclear if Trump would go through with them after campaigning on making life more affordable and increasing the energy market.
Canada is the largest source of U.S. energy imports, and almost all Canadian crude oil exports went to its neighbour in 2023.