[President-elect Donald Trump on Monday promised massive hikes in tariffs on goods coming from Mexico, Canada, and China starting on the first day of his administration. The move will be in retaliation for illegal immigration and “crime and drugs” coming across the border.
Trump said America’s neighbors can “easily solve this long simmering problem” and vowed to charge Mexico and Canada a 25% Tariff on all products coming into the United States. The tariff will remain in effect until such time as drugs, particularly Fentanyl, and all illegal aliens stop the invasion of the country.
Similarly, Trump said that China will face higher tariffs on its goods – by 10% above any existing tariffs – until it prevents the flow of illegal drugs into the United States. Trump has had many talks with Chinese officials about the massive amounts of drugs being sent into the United States, but to no avail.
China’s officials promised Trump the country would execute drug dealers caught funneling drugs into the United States, but never followed through. Trump’s promised tariffs are a direct challenge to his predecessors, including President Barack Obama, who sought to strengthen relationships with the countries.
The proposed tariffs have been widely criticized by economists, who warn that they will increase prices for American consumers, boost inflation, and create retaliatory actions by the targeted countries. The tariffs would also add to revenue gaps that Trump’s proposed tax cut plan would create, and would not reduce the trade deficit.
Although the tariffs are expected to harm the economy, some officials, including Trump’s pick for Treasury secretary, have argued that they can be implemented correctly to avoid increasing inflation. The decision on tariffs ultimately rests with the president, who wields significant power to levy them with the stroke of a pen.
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