WASHINGTON (NEXSTAR) – President- elect Donald Trump is threatening our three biggest trade partners- Mexico, Canada and China with new tariffs.
The president-elect says Mexico, Canada and China are not doing enough to stem the flow of illegal immigration and fentanyl into the U.S.
However, economists warn if he follows through, Americans could end up paying more on everything from electronics to cars to fuel.
“What we’re talking about is massive tax increases that will hit American businesses and American consumers,” said Brandon Arnold of the National Taxpayers Union.
The National Taxpayers’ Union is sounding the alarm.
“If we put 25% tariffs on Mexico and Canada they’re not just going to sit there and take it…they’re going to strike back at our companies,” said Arnold.
Already Mexico’s president promises to hit back and threatened tariffs on U.S. goods and insists Mexico has cracked down on border crossings.
On Truth Social, Trump says the tariffs will go into effect unless Mexico and Canada do more to stop the flow of drugs and illegal immigration writing, “thousands of people are pouring through.”
Texas Republican Governor Greg Abbott and Trump’s newly appointed border czar took the president-elect’s message to the southern border Tuesday.
“Let me be clear, there is going to be a mass deportation,” said Trump’s border czar Tom Homan.
At the northern border, Canadian Prime Minister Justin Trudeau is taking a diplomatic approach.
“I had a good call with Donald Trump last night again,” said Trudeau.
He says their trade teams are planning meetings.
Trump is also threatening a 10% tariff on Chinese imports because of their production of fentanyl.
A spokesperson with the Chinese embassy responded tweeting, “no one will win a trade war.”
