Trump plans 25 percent tariff on goods from Canada and Mexico, leaders warn of economic impact

President-elect Donald Trump plans to impose a 25 percent tariff on all goods from Canada and Mexico. He announced this on Truth Social, stating the tariffs will remain until both countries address drug trafficking and illegal border crossings. Canadian leaders warn that the tariffs will negatively impact economies on both sides of the border. They emphasize that U.S. consumers will face higher prices and reduced competitiveness, with potential economic costs reaching $125 billion annually for the U.S. The Canadian Chamber of Commerce estimates a 10 percent tariff could shrink Canada's economy by up to 1 percent. They predict that a 25 percent tariff would lead to even greater economic challenges, affecting purchasing power and investment sentiment in Canada.