Trump's Tariff Threat On China, Mexico, Canada Hits MarketsPresident-elect Donald Trump vowed additional tariffs on China as well as US neighbors Canada and Mexico, roiling markets with his first specific threat to curb global trade flows since his election win.
Trump said he would impose additional 10% tariffs on goods from China and 25% tariffs on all products from Mexico and Canada in posts to his Truth Social network on Monday. The Canadian dollar fell to a four-year low on the news, while the peso traded close to its weakest since 2022. China's yuan edged lower offshore.
Trump cast the new levies as necessary to clamp down on migrants and illegal drugs flowing across borders. Trump accused China of failing to follow through on promises to institute the death penalty for traffickers of fentanyl, writing that "drugs are pouring into our Country, mostly through Mexico, at levels never seen before."
"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 of America," Trump said.
In another post, the incoming president also vowed to hit Mexico and Canada with a 25% tariff on "ALL products," saying he would sign an executive order to that effect on his first day in office.
"As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before," he said. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
Trump's tariff threats provide a sharp counter to expectations that he might temper his trade policies during a second term, despite concerns from some business leaders about the impact. It came just days after he tapped Scott Bessent to be the next US Treasury secretary, a move that was seen as a promising sign for those seeking a more measured tariff stance.
Representatives for Canadian Finance Minister Chrystia Freeland and the Mexican Foreign Affairs Ministry and Economy Ministry, as well as China's Foreign Ministry and Commerce Ministry, didn't immediately respond to requests to comment. Spokespeople for Trump didn't immediately answer a question about whether there would be exemptions from the duties.
Trump said he would impose additional 10% tariffs on goods from China and 25% tariffs on all products from Mexico and Canada in posts to his Truth Social network on Monday. The Canadian dollar fell to a four-year low on the news, while the peso traded close to its weakest since 2022. China's yuan edged lower offshore.
Trump cast the new levies as necessary to clamp down on migrants and illegal drugs flowing across borders. Trump accused China of failing to follow through on promises to institute the death penalty for traffickers of fentanyl, writing that "drugs are pouring into our Country, mostly through Mexico, at levels never seen before."
"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 of America," Trump said.
In another post, the incoming president also vowed to hit Mexico and Canada with a 25% tariff on "ALL products," saying he would sign an executive order to that effect on his first day in office.
"As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before," he said. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
Trump's tariff threats provide a sharp counter to expectations that he might temper his trade policies during a second term, despite concerns from some business leaders about the impact. It came just days after he tapped Scott Bessent to be the next US Treasury secretary, a move that was seen as a promising sign for those seeking a more measured tariff stance.
Representatives for Canadian Finance Minister Chrystia Freeland and the Mexican Foreign Affairs Ministry and Economy Ministry, as well as China's Foreign Ministry and Commerce Ministry, didn't immediately respond to requests to comment. Spokespeople for Trump didn't immediately answer a question about whether there would be exemptions from the duties.