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President-elect Donald Trump on Monday offered details on proposed new tariffs on Mexico, Canada and China, promising to pass them within the first days of his presidency.
Trump said on social media that he would impose a 25% tax on all goods entering the country from Canada and Mexico, and 10% on goods from China, on top of the current tariffs.
“On January 20th, as one of my 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,” he wrote to his Truth. Social site, saying the measure is necessary to crack down on illegal immigration and drugs.
Trump said the new tariffs would remain in place “until drugs, particularly fentanyl, and all illegal aliens stop this invasion of our country!”
The US is the world’s largest importer of goods, with Mexico, China and Canada the top three suppliers. according to the most recent census data. Rates could dramatically increase prices in everything from groceries to automobiles, according to CBS News.
Potential trade policy changes under the incoming Trump administration present a new layer of unpredictability for contractorsaccording to sector economists. During the presidential campaignTrump pledged to enact tariffs ranging from 10 percent to 20 percent on all imported goods and raise tariffs on products made in China to 60 percent.
“New or increased tariffs have the potential to raise prices for a wide range of construction inputs, including domestically produced items that compete with imports,” said Ken Simonson, chief economist at the Associated General Contractors of America, on Construction Dive last week.
Contractors have largely benefited from the stabilization of input prices in 2024, but that may change next year as it remains unclear how material prices will react to the proposed tariffs, he said. said Anirban Basu, chief economist at Associated Builders and Contractors, in a press release last week.
“The trade policy of the next administration increases the uncertainty about the costs of construction materials,” Basu said. “Beyond the implications of potential tariffs, input prices may rise in the short term if buyers rush to import materials before the implementation of these policies.”
Sebastian Obando contributed to this report.
