US President-elect Donald Trump plans to impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China, citing concerns over illegal immigration and the trade of illicit drugs.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," Trump posted on his Truth Social platform.

He also criticized China for not doing enough to prevent illegal drugs from entering the US through Mexico.

"Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America," Trump wrote.

Trump is set to be inaugurated next year on January 20.

Tariffs part of Trump's economic agenda

During the election campaign, he vowed to impose tariffs of 10% on all goods imported into the US and even higher tariffs of 60% on Chinese-made products.

Trump believes one way to boost US manufacturing is by imposing tariffs on imported goods. 

He has targeted China in particular , vowing to slap tariffs on Chinese imports of over 60% - much higher than those imposed during his first term.

Trump's nominee for Treasury Secretary, Scott Bessent, would oversee the implementation of tariffs if confirmed. He views tariffs as a negotiating tool with other nations.

In a Fox News op-ed, Bessent argued that tariffs are "a useful tool for achieving the president's foreign policy objectives. Whether it is getting allies to spend more on their own defense, opening foreign markets to US exports, securing cooperation on ending illegal immigration and interdicting fentanyl trafficking, or deterring military aggression, tariffs can play a central role."

Trump to face pushback from trading partners

When Trump imposed higher tariffs during his first term in office, other countries, including Canada, responded with retaliatory tariffs of their own.

However, Trump brokered the United States-Mexico-Canada Agreement (USMCA), which came into law in 2020.

It meant goods moving between the United States, Canada and Mexico crossed borders largely duty-free.

His reference to the fentanyl crisis and illegal immigration suggests he is leveraging national security issues to justify breaking the deal, a move permitted under World Trade Organization (WTO) rules.

Mexico finance ministry however said, "Mexico is the United States' top trade partner, and the USMCA provides a framework of certainty for national and international investors."

In a joint statement from Canada's Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic Leblanc, emphasized they said they will discuss the border and vast economic ties with the incoming US administration.

"Canada places the highest priority on border security and the integrity of our shared border. Our relationship today is balanced and mutually beneficial, particularly for American workers," the statement read.

Meanwhile, the Chinese Embassy in Washington warned neither the US nor China would win a trade war.

lo/jsi (AP, AFP, Reuters, dpa)