Donald Trump Plans New Tariffs on China, Mexico, and Canada

Former President Donald Trump says he will introduce new taxes on goods from Mexico, Canada, and China if he becomes president again. He claims this will help stop illegal immigration and drug smuggling into the U.S.

Trump announced that on his first day as president, he will sign an order to put a 25% tax on goods from Mexico and Canada. He also plans to add a 10% tax on products from China until the country helps stop the flow of fentanyl, a deadly drug, into the U.S.

If these taxes are enforced, they could hurt relationships with the U.S.’s three biggest trading partners and disrupt global trade. Critics say the tariffs might also increase prices for American consumers.

On his social media platform, Truth Social, Trump said Mexico and Canada will face these taxes until they take action to stop drug smuggling and illegal border crossings.

Possible Conflict with Trade Agreements

“Both Mexico and Canada can solve this problem if they want to,” Trump wrote. “It’s time for them to pay a big price!”

Trump also accused China of breaking promises to punish people involved in fentanyl trafficking. A Chinese government spokesperson denied the claims and said, “No one wins in a trade war.”

These new taxes could break the U.S.-Mexico-Canada Agreement (USMCA), a trade deal signed by Trump in 2020 that allows goods to move freely between the three countries.

Mexico reminded the U.S. of its strong trade relationship, with most of its exports going to America. Canada’s Prime Minister Justin Trudeau has reportedly spoken with Trump about the issue, but no details were shared.

China, another target of Trump’s plan, is facing a weaker economy than before. Problems like a housing crisis and growing government debt are affecting its stability. However, the U.S. still buys about 15% of China’s exports.

The Biden administration has also been pressuring China to stop fentanyl production, as the drug has been linked to nearly 75,000 deaths in the U.S. last year.

Trump often uses tariffs as part of his economic plan. He argues that these taxes protect American jobs and bring in more money for the government. However, experts say consumers usually end up paying higher prices because of tariffs.

Some believe Trump is using the threat of high taxes as a way to negotiate better deals. His pick for Treasury Secretary, Scott Bessent, described this approach as “escalate to de-escalate.