(Bloomberg) — President-elect Donald Trump said he would impose additional 10% tariffs on goods from China and 25% tariffs on all products from Mexico and Canada, citing the levies as necessary to clamp down on migrants and illegal drugs flowing across US borders.
In posts to his Truth Social network on Monday, Trump claimed China had failed 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 neighbors 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!”
The Mexican peso fell more than 1% as traders reacted to the headlines about the proposal, while the Canadian dollar dropped about 0.5%. China’s yuan edged lower offshore.
—With assistance from Cormac Mullen.
