President-elect Donald Trump provided details Monday regarding proposed new tariffs on Mexico, Canada and China, promising to enact them in the first days of his presidency.
Trump said on social media that he would impose a 25% tax on all products entering the country from Canada and Mexico, and 10% on goods from China in addition to current tariffs.
"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," he wrote on his Truth Social site, saying the move is necessary to crack down on illegal immigration and drugs.
Trump said the new tariffs would remain "until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
The U.S. is the largest importer of goods in the world, with Mexico, China and Canada its top three suppliers, according to the most recent Census data. Tariffs could dramatically raise prices on everything from groceries to automobiles, according to CBS News.
The potential trade policy changes under the incoming Trump administration presents a new layer of unpredictability for contractors, according to industry economists. During the presidential campaign, Trump vowed to enact tariffs ranging from 10% to 20% on all imported goods and to raise tariffs on Chinese-made products to 60%.
“New or increased tariffs have the potential to raise prices for a wide range of construction inputs, including items produced domestically that compete with imports,” Ken Simonson, chief economist at the Associated General Contractors of America, told Construction Dive last week.
Contractors have largely benefited from input price stabilization in 2024 but that may change next year, as it remains unclear how materials prices will react due to proposed tariffs, said Anirban Basu, Associated Builders and Contractors’ chief economist, in a news release last week.
“The next administration’s trade policy increases uncertainty regarding construction material costs,” said Basu. “Beyond the implications of potential tariffs, input prices may rise in the short term if purchasers rush to import materials prior to the implementation of those policies.”
Sebastian Obando contributed to this report.
