United States of America Incoming President has threatened to impose several tarriffs on Canadian, Mexican and Chinese goods, many of which are already under tariffs imposed by his administration during his first term.
President Elect Donald Trump said on Monday that he will enact tariffs of 25 percent on all Canadian and Mexican goods and add another 10 percent tariff to all Chinese goods.
Taking to the Social Media Platform, Truth Social, Trump said the new tariffs are meant to push all three nations to take stronger efforts to bolster border security and crack down on fentanyl exports to the U.S.
“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!” Trump posted.
Trump pledged during his campaign to impose import taxes of 10 percent to 20 percent on all foreign goods, with tariffs of up to 60 percent on Chinese goods. Canada, Mexico and China are the U.S.’s largest trading partners.
Trump’s threat comes days after he announced he would nominate investor Scott Bessent as his Treasury secretary. The selection makes Bessent a key player in implementing Trump trade’s agenda and attempting to keep markets calm amid the expected disruption.
Bessent, the founder of Key Square Group, is expected to support the new president’s economic agenda, which includes tariffs and pro-business policies. Investors believe Bessent, an experienced Wall Street executive and fiscal conservative, will prioritize economic and market stability in the United States.
Scott made it clear that he wants to extend the tax cuts made in Trump’s first term in office.
He has defended the use of import tariffs, calling them a “useful negotiating tool.”
During the campaign period, Scott told voters that Trump would usher in a “new golden age with de-regulation, low-cost energy, and low taxes.”
Bessent, who has been a donor, economic adviser and booster on TV for Trump, was nominated as U.S. Treasury secretary by Trump on Friday.
Bessent has spent his career in finance, working for macro investment billionaire George Soros and noted short seller Jim Chanos, and has advocated for tax reform and deregulation, particularly to spur bank lending and energy production.
As U.S. Treasury secretary, Bessent will essentially be the highest-ranking U.S. economic official, responsible for maintaining the world's largest economy, from collecting taxes and paying the nation's bills to managing the $28.6-trillion Treasury debt market and overseeing financial regulation.
The Treasury boss also runs U.S. financial sanctions policy, has influence over the U.S.-led International Monetary Fund, World Bank and other international financial institutions, and manages national security screenings of foreign investments in the United States.
The Trump Threat is receiving mixed reactions with his supporters arguing it's necessary to support local manufacturers while controlling the drug menace.
However, according to economists, The tariffs, if implemented, could dramatically raise prices on everything from gas to automobiles.
Mexican President has reacted to the threat with his own fair share of warning to the 5th POTUS, insisting any tarriffs from the U.S President-elect will be repatriated on their side as well.
The U.S. is the largest importer of goods in the world, with Mexico, China and Canada its top three suppliers, according to the most recent Census data.