Can Trump impose tariffs without Congress? Their recommendations were announced.

President-elect Donald Trump vowed Monday to impose new tariffs on all goods imported from China, Mexico and Canada, America’s three largest trading partners. The incoming president said the moves would come via executive order on Inauguration Day, reinforcing a long-standing campaign promise that threatens to roil global trade and raise prices for American consumers. Trump said the tariffs would remain in effect “until the Drugs, especially Fentanyl, and the entire Illegal Alien Invasion of our Country are stopped.”

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Trump announced that a 25 percent tariff will be imposed on Mexican and Canadian goods. Chinese goods will face a 10 percent tax.

These tariffs will affect roughly $1.5 trillion worth of goods passing through North America, as well as approximately $600 billion in trade between the United States and China.

It’s unclear exactly what impact these policies will have on Americans’ wallets. But economists warn that prices for basic needs such as food, cars and electronics could rise.

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What will the tariffs affect?

Once enacted, tariffs will affect a large portion of global trade.

Mexico is the United States’ largest trading partner. Most of the goods exported here from Mexico last year were manufactured goods, including automobiles, machinery and electrical equipment. Mexico also accounted for more than half of U.S. fresh fruit imports in 2022, according to the Department of Agriculture.

Canada supplies crude oil and petroleum, as well as machinery and parts. The United States also imports plastics, pharmaceuticals, lumber and agricultural products.

Imports from China include electronic products such as phones and computers, sports equipment, plastic and furniture.

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Can Trump act unilaterally?

In social media posts on Monday, Trump said he would enact the tariffs “as one of my first Executive Orders” and would sign “all necessary documents” to make it happen. Legally, the door to unilateral action may be open. Laws passed over the past few decades give presidents plenty of authority over tariffs, especially when it comes to protecting industries harmed by global trade. However, it is unclear whether blanket tariffs on all foreign goods will apply.

Yet Trump has made lower taxes, increased energy production and deregulation, as well as sweeping tariffs, the foundation of his agenda since his first term.

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What happened last time?

Trump frequently imposed tariffs during his first term, targeting imports from China, Mexico, Canada and the European Union. During that time, the overall trade deficit increased from $792.4 billion in 2017 to $901.5 billion in 2020, according to the Census Bureau.

Yet at the time, Trump’s rhetoric and promises about tariffs did not always translate into specific policy. Sometimes threats stemming from immigration disputes or other economic issues never materialized or were postponed indefinitely, as with the recent tariffs imposed on Chinese goods after a partial trade deal was reached with Beijing in 2019. Other proposed tariffs were announced haphazardly and without much detail. .

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How about USMCA?

Some experts already argue that tariffs would violate existing trade agreements, namely the U.S.-Mexico-Canada Agreement, which took effect in 2020 after Trump negotiated it. Goods moving between these three countries can cross the borders duty-free. Massive tariffs imposed through executive action would defeat this agreement.

Mexico and Canada vowed retaliation: Mexican President Claudia Sheinbaum said her country would impose its own tariffs if Trump moves forward. Mexico’s largest exporters include US-based automakers General Motors and Ford Motor Company, which have built large modern production facilities throughout the country.

In a joint statement following Trump’s posts, Canadian Deputy Prime Minister Chrystia Freeland and Public Security Minister Dominic LeBlanc said that the relationship between the USA and Canada is “balanced and mutually beneficial”. The president of Quebec, one of Canada’s largest provinces, said the decision “poses a tremendous risk” to the Canadian economy and pressure is mounting on Prime Minister Justin Trudeau to ease the impacts on the country’s workers.

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David Lynch, Jeff Stein, Niha Masih and Mary Beth Sheridan contributed to this report.

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