Trump plans significant tariffs on imports from Canada, Mexico, and China

President-elect Donald Trump plans to impose significant tariffs on imports from Canada, Mexico, and China, starting with a 25% tax on goods from Canada and Mexico and a 10% tax on Chinese products. This move aims to address illegal immigration and drug trafficking. Economists express skepticism about the effectiveness of tariffs, noting they often lead to higher prices for consumers and can harm domestic industries reliant on imports. They warn that these tariffs could particularly impact energy, automobiles, and food supplies. The Biden administration has maintained some tariffs from the previous administration, but the U.S. has shifted away from promoting free trade. Tariffs, once a major revenue source, now account for a small portion of federal income, with most revenue coming from income taxes.