President-elect Donald Trump’s threat to impose a 25 percent tariff on Canadian and Mexican goods would hit more than $900 billion worth of goods from the two countries, including huge volumes of autos, auto parts and energy products.
The two countries account for nearly one-third of U.S. goods imports, which totaled about $3.1 billion last year. Trump, in a post Monday night on Truth Social, said he planned to issue an executive order imposing the tariffs when he takes office on Jan. 20 unless the two countries take action to stem illegal migration across the Southern and Northern U.S. border.
“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 wrote.
While the duties would undoubtedly hurt imports from the two countries, tariffs are paid by the U.S. companies that import the products and increased costs are often passed onto consumers.
