President-elect Trump has put the country’s top three trading partners on notice less than two months before he takes office.
The former president threatened Monday to impose steep 25 percent tariffs on all goods from Canada and Mexico — two key U.S. allies — and ramp up tariffs on China with an executive order he plans to sign on Day 1.
While new tariffs were a key part of Trump’s reelection campaign, the scale and targets are a notable escalation with far-reaching effects on the U.S. and global trade.
Here are five takeaways from Trump’s latest threat.
Trump is mixing trade and border policy
Trump has touted tariffs for years as his preferred way to boost U.S. manufacturing and push other countries for more favorable trade terms. But his latest tariff threat is aimed at forcing both Mexico and Canada to crack down on their borders with the U.S.
In a Monday post on Truth Social, Trump said he will maintain 25 percent tariffs on all Canadian and Mexican goods “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country.”
“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem,” Trump wrote. “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's latest threat is not the first time he's used economic measures as leverage in broader fights.
The former president threatened to seal the U.S.-Mexico border entirely during his first term amid a dispute over immigration with the Mexican government. Doing so could have caused serious economic harm in both........