President-elect Donald Trump announced tonight on his social media platform Truth Social that he intends to slap additional tariffs on three of America’s top trading partners: Canada, China, and Mexico. The measures proposed by Trump, who has dubbed himself as “a Tariff Man,” risk pushing inflation higher after falling near to the Federal Reserve’s target of two percent.

What Trump Said: Trump promised that upon gaining office, he will issue an executive order imposing 25% tariffs on all imports entering the United States from Canada and Mexico. He described the levies as a measure of leverage to force the two countries to fight against the influx of undocumented migrants and drugs such as fentanyl. Trump also threatened a smaller 10% duty on China, alleging that Beijing had done little to address its part in the fentanyl supply chain bound for the United States.

‘Tariff Man’ Trump sees tariffs as a multifunctional tool for balancing trade, protecting American companies, and punishing foreign countries for non-trade reasons. During his 2024 presidential campaign, Trump advocated a minimum duty of 10% on all imports, as well as a specific 60% tariff on items imported from China.

He also threatened tariffs of up to 75% on Mexican imports if the country failed to reduce migrant flows into the US through its southern border. While the values presented today are smaller and only apply to three countries, he might broaden their breadth and severity.

He also threatened tariffs of up to 75% on Mexican imports if the country failed to decrease migrant flows into the United States via its southern border. While the values offered today are smaller and only apply to three countries, he may expand their scope and severity.

Today, Trump stated that “it is time for” Canada and Mexico “to pay a very big price.” However, American customers will most likely pay with their wallets. The top three US trade partners, Canada, China, and Mexico, account for over half of all US imports. This encompasses a wide range of products, from textiles and autos to fruit and pork.

Economists and trade associations agree that Trump’s tariffs, combined with his immigration and other policies, will drive inflation higher. Former Treasury Secretary Larry Summers has warned that Trump’s domestic and economic policies may push inflation above the Biden administration’s 9.1 percent peak. Former Republican Senator Phil Gramm has also expressed concern about the Trump tariffs, claiming they might have the same impact as the Hoover-era Smoot-Hawley tariff, which significantly curtailed global trade and exacerbated the Great Depression. The National Retail Federation estimates that Trump tariffs could cost US customers up to $78 billion in annual price increases for major categories of consumer products.