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President-elect Donald Trump has announced a slate of tariffs that will hit the US's closest neighbors hard.
In a pair of Truth Social posts on Monday, Trump said that he plans to kick off his term on January 20 with executive orders "to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders."
"This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!" Trump wrote on Truth Social.
Trump added that he believes both countries have the "absolute right and power" to find ways to stop migrants from crossing into the US.
"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.
In another Truth Social post on Monday, Trump also said he intends to slap China with an additional 10% import tariff — on top of any tariffs he already plans to impose.
These tariffs, Trump said, are because China's to blame for "the massive amounts of drugs, in particular Fentanyl, being sent into the United States."
Trump previously said that he planned to impose 60% tariffs on Chinese goods. If Trump goes through with his earlier proposal, this additional 10% tariff will bring that percentage up to 70%.
Investors and companies alike are bracing for a raft of tariffs that Trump already has planned — and prices of goods are likely to go up.
It is unclear what China's response to this new era of Trump tariffs will be. But the last time Trump was president, his "America First" policies triggered a trade war with China.
Representatives for Trump and the foreign ministries of Canada, China, and Mexico did not immediately respond to requests for comment from Business Insider.
Trump's announcement sparked a rally in the US dollar, with the US Dollar Index up 0.5% at 9:18 p.m.
The greenback was 1% higher against the Canadian dollar and 1.5% higher against the Mexican peso.
Asian markets fell, with the Nikkei 225 down 1.2% at 11:05 a.m. local time.
Trump's comments are likely to add volatility to the markets, wrote Rob Carnell, the Asia Pacific head of research for ING bank, on Tuesday.
Trump's latest tariff threats signal how he would approach relationships with various trade partners, rekindling memories of his first time in office.
"And so it starts," Catherine McKenna, Canada's former environment minister, posted on her BlueSky social media account. "The amount of time and energy our government had to spent on Trump last time was bonkers."
A 25% tariff on Canadian imports to the US would be "devastating" for workers and jobs in both Canada and the US, wrote Doug Ford, the premier of Ontario province, on X. "We need a Team Canada approach and response—and we need it now."
Energy giant Canada is the largest supplier of crude oil to the US.
In the last 12 months, Canada exported 173.6 billion Canadian dollars, or $123 billion, worth of energy products to the US, according to Bloomberg calculations based on official data.
Energy, motor vehicles, and consumer goods to the US account for nearly 60% of all Canadian exports to the US, per Bloomberg.
