President Donald J. Trump said the U.S. will implement a 25% tariff on all goods from Canada and Mexico starting on Tuesday.
Trump said he is using the International Emergency Economic Powers Act to "combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking."
The president tied the public health crisis to the drug trade, as Mexican drug cartels make and ship fentanyl, and other drugs, to the U.S. from both Mexico and Canada. In addition, Trump said the tax is due to both countries allowing undocumented immigrants to enter the U.S.
The U.S. did nearly $840 billion worth of trade with Mexico and $762 billion with Canada in 2024, according to the Associated Press. Goods that will see higher prices include cars, crude oil, liquor, lumber, vegetables and fruit.
Trump said the tariff "will remain in effect until such time as drugs, in particular fentanyl, and all Illegal aliens stop this invasion of our country!”
At the same time, Chinese goods will also be taxed an additional 10%, totalling 20%, according to NBC News.
