Trump pledges tariffs on Mexico, Canada and China

President-elect's plans come after tough economic rhetoric on the campaign trail

- Natalie Andrews & Andrew Restuccia

President-elect Donald Trump pledged that soon after taking office he will slap steep tariffs on Mexico and Canada, two of America's closest allies, as well as China, the clearest indication since his election victory that he plans to follow through on the tough campaign rhetoric that helped propel him to the White House.

Posting on his Truth Social platform, Trump said that on the first day of his presidency he will charge Mexico and Canada a 25% tariff on all products coming into the U.S. He added in a separate social-media post that he would impose an additional 10% tariff on all products that come into the U.S. from China, though he didn't specify whether that levy would come on his first day in office.

Such a tariff would come on top of existing tariffs the U.S. has already imposed on Chinese goods.

"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 wrote, referencing his proposed tariffs on Canada and Mexico.

Doing so would likely upend the trade agreement that Trump negotiated with the two neighboring countries in his first term, known as USMCA. U.S. goods and services traded utilizing that trade agreement totaled an estimated $1.8 trillion in 2022, according to the office of the U.S. Trade Representative, which oversees U.S. trade agreements.

Various laws empower the president to impose tariffs without authorization from Congress, but most require an economic, commercial, or national security justification. It wasn't immediately clear what legal authority Trump plans to invoke.

Economists have warned that Trump's plan to impose sweeping tariffs could lead to higher prices on goods for consumers.