New York. President-elect Donald Trump threatened on Monday to impose sweeping new tariffs on Mexico, Canada, and China as soon as he takes office as part of his effort to crack down on illegal immigration and drugs. He said he would impose a 25 percent tax on all products entering the country from Canada and Mexico, and an additional 10 percent tariff on goods from China, as one of his first executive orders.

The tariffs, if implemented, could dramatically raise prices for American consumers on everything from gas to automobiles to agricultural products. The US is the largest importer of goods in the world, with Mexico, China and Canada as its top three suppliers, according to the most recent U.S. Census data.

Trump made the threats in a pair of posts on his Truth Social site in which he railed against an influx of illegal migrants, even though southern border apprehensions have been hovering near four-year lows.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent Tariff on ALL products coming into the United States, and its ridiculous Open Borders," he wrote, complaining that "thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” even though violent crime is down from pandemic highs.

He said the new tariffs would remain in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"

"Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power," he went on, “and until such time that they do, it is time for them to pay a very big price!”

Trump also turned his ire on China, saying he has “had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail.”

“Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America,” he wrote.

It is unclear whether Trump will actually go through with the threats or if he is using them as a negotiating tactic before he returns to the White House in the new year.

Trump’s nominee for treasury secretary, Scott Bessent — who if confirmed, would be one of several officials responsible for imposing tariffs on other countries — has on several occasions said tariffs are a means of negotiation.

He wrote in a Fox News op-ed last week, before his nomination, that tariffs are “a useful tool for achieving the president’s foreign policy objectives. Whether it is getting allies to spend more on their own defense, opening foreign markets to US exports, securing cooperation on ending illegal immigration and interdicting fentanyl trafficking, or deterring military aggression, tariffs can play a central role.”

Trump won the election in large part due to voter frustration over inflation, but his threatened tariffs pose the risk of pushing prices even higher for food, autos, and other goods. If inflationary pressures increase, the Federal Reserve might need to keep its benchmark interest rates higher.

If Trump were to move forward with the threatened tariffs, the new taxes would pose an enormous challenge for the economies of Canada and Mexico, in particular.

The Canadian dollar weakened sharply in foreign exchange markets immediately following Trump’s post. Canada is one of the most trade-dependent countries in the world, and 75% of Canada’s exports go to the U.S.

The Canadian government, in a joint statement from Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic Leblanc, emphasized the close relationship between the two countries and said they will discuss the border and vast economic ties with the incoming administration.

“Canada places the highest priority on border security and the integrity of our shared border. Our relationship today is balanced and mutually beneficial, particularly for American workers,” the statement read.

Freeland, who chairs a special Cabinet committee on Canada-US relations to address concerns about another Trump presidency, has said the president-elect's promise to launch a mass deportation and concern that that could lead to an influx of migrants to Canada, is a top focus of the committee.

Mexico’s Foreign Relations Department and Economy Department also had no immediate reaction to Trump’s statements. Normally such weighty issues are handled by the president at her morning press briefings.

Last week, a senior Chinese commerce official said higher tariffs on Chinese exports would backfire by raising prices for consumers. Vice Commerce Minister Wang Shouwen also said China can manage the impact of such “external shocks."