CNN
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President-elect Donald Trump on Monday promised massive increases in tariffs on goods from Mexico, Canada and China, starting on the first day of his administration.

Trump said the move will be in retaliation for illegal immigration and “crime and drugs” crossing the border.

“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 entering the United States, and the ridiculous open borders,” wrote Trump in his Truth Social platform. “This tariff will remain in effect until drugs, especially Fentanyl, and all illegal aliens stop this invasion of our country!”

Trump said America’s neighbors “can easily solve this long-dormant problem.”

Similarly, Trump said China will face higher tariffs on its goods — 10% above all existing tariffs — until it prevents the flow of illegal drugs into the United States.

“I have had many conversations with China regarding the massive amounts of drugs, particularly Fentanyl, being sent into the United States – but to no avail,” Trump wrote on Truth Social.

The president-elect claimed in the post that Chinese officials promised him the country would execute drug dealers caught trying to funnel drugs into the United States, but “never followed through.”

CNN has contacted the embassies of Mexico, Canada and China for comment.

Trump campaigned by using tariffs as a cudgel against foreign countries — as he did during his first administration — to grow domestic manufacturing while increasing tax revenues to offset the large revenue disparities his proposed tax cut plan would create.

Tariffs essentially serve as a tax on goods imported into the United States. Although Trump has repeatedly said the targeted foreign country pays the tariffs, they are actually paid by companies that buy the imported goods — and those costs are typically passed on to American consumers. Most mainstream economists believe the tariffs will be inflationary, and the Peterson Institute for International Economics has estimated that Trump’s proposed tariffs would cost the average American household more than $2,600 a year.

Scott Bessent, Trump’s pick for Treasury secretary, has said tariffs would not add to inflation if implemented properly. Wall Street welcomed Bessent’s appointment as he is widely expected to roll out tariffs gradually.

While Bessent, if confirmed by the Senate, would be partially responsible for implementing the tariffs, Trump as president, in coordination with the Secretary of Commerce and the U.S. Trade Representative, would wield significant power to impose tariffs with the stroke of a pen. He did that when he was last in the White House, imposing high tariffs on goods, mainly from China.

The problem with tariffs is that they often result in retaliation from the targeted countries, sparking a trade war — which is exactly what happened during Trump’s first term. That weakened the effect of the tariffs on domestic production, as manufacturers’ goods became less attractive to foreign buyers.

Trump has promised significantly higher tariffs during his second term. While he continues to discuss many different figures, he has proposed a 60% tariff on all Chinese goods, as well as a blanket tariff of 10% or 20% on all other US imports.

This story is current and will be updated.