President Trump acknowledged that the across-the-board tariffs he ordered into effect Saturday on imports from Canada, Mexico and China might cause “some pain,” but argued that they will pay off in the long term.
The 47th president also once again brought up the idea of annexing Canada, saying the country “should become our Cherished 51st State” to reap the benefits of lower taxes, a strong military and no tariffs — an offer the northern neighbor has repeatedly spurned.
“This will be the golden age of America! Will there be some pain? Yes, maybe (and maybe not!). But we will make America great again, and it will all be worth the price that must be paid,” Trump, 78, wrote on Truth Social Sunday in all capitalization.
“We are a country that is now being run with common sense — and the results will be spectacular!!!”
Trump had warned China, Canada and Mexico last year to take measures to rein in the fentanyl crisis or face tariffs.
He also told Canada and Mexico to crack down on illegal immigration.
All three countries are America’s largest three trading partners.
He had given them until Saturday to comply with his demands and followed through on his threat after being unsatisfied with the results.
Trump has long been a fan of tariffs and slammed critics of his move, saying that the “tariff lobby” is “always wrong.”
The latest on President Trump’s tariffs
- Trump says Canada, Mexico and China tariffs ‘will all be worth it’ — but may cause some ‘pain’
- Trump officially ushers in long-awaited tariffs on Canada, Mexico and China — here’s how it could affect ordinary Americans
- CEO of Canada’s 2nd biggest company defends Trump’s tariff demands, slams Trudeau for not stopping trade war
- Canada, Mexico strike back with retaliatory tariffs on American goods hours after Trump’s executive action
- Hochul says Trump’s tariffs on Canada will hurt New York businesses: ‘Why are we doing this?’
He accused free trade proponents of allowing other countries to take advantage of the US by allowing “crime, and poisonous drugs” to “freely flow into America.”
“Those days are over!”
The 47th president first issued an ultimatum last November demanding concessions from Canada, China, and Mexico.
Together, trade between the US and those three countries is about $1.4 trillion annually and over 40% of US total imports. For context, the US gross domestic product clocked in at $27.36 trillion in 2023, according to the US Bureau of Economic Analysis.
Canada has announced retaliatory tariffs on $107 billion worth of US goods and Mexico has also vowed a response, though it has refrained from divulging details so far.
“We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason,” Trump added of the northern neighbor. “We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use.”
“Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true!”
Both of the US neighbors are disproportionately reliant on the US for exports than America is on them.
Roughly 75% of Canada’s exports go to the US while only about 13% of American exports go to Canada. Meanwhile, about 80% of Mexican exports flow to the US, while 16% of US exports go to them.
About 14% of US imports come from China, while about 15% of Beijing’s exports go to the US.
Trump’s tariffs included 25% across-the-board tariffs on Canada and Mexico and a 10% across-the-board tariff on Chinese goods coming into the US.
Those tariffs come in addition to all existing US tariffs on those three countries. Trump’s tariffs also feature a few carveouts. The tariff on Canada, for example, has a lower rate of 10% on the country’s energy resources.
While many of Trump’s close allies have suggested that he views tariffs as a negotiating tool, Trump himself has mused about using tariffs as a means of raising revenue for the federal government and revitalizing domestic manufacturing.
The Tax Foundation has estimated that Trump’s tariffs will reduce GDP by about 0.4 percentage points, harm unemployment by about 344,000 jobs and amount to tax increases of about $1.2 trillion between 2025 and 2034.
In the short term, the Tax Foundation is expecting the average US household to see a tax hike of about $830.
Trump groused about US trade deficits with the three countries and argued that companies complaining about the levies should simply manufacture domestically.
“The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the ‘Stupid Country’ any longer,” Trump proclaimed.
“Make your product in the USA and there are no tariffs!” he added in all caps. “Why should the United States lose trillions of dollars in subsidizing other countries, and why should these other countries pay a small fraction of the cost of what USA citizens pay for drugs and pharmaceuticals, as an example?”