President Donald Trump has signaled that new tariffs will take effect next week, targeting goods from Canada and Mexico.
According to the president, tariffs of 25% will go into effect on goods imported from Canada and Mexico beginning on Tuesday, Another 10% of tariffs will go into effect on China, according to the president.
In a post on Truth Social, Trump said the tariffs were needed to combat the flow of illegal drugs into the U.S.
“We cannot allow this scourge to continue to harm the USA,” he said.
Trump also said that China’s government has “taken advantage of” the United States on trade markets, which also requires additional tariffs to be imposed.
According to NBC News, major stock exchanges have been rocked by the back-and-forth on tariff threats by the Trump administration, and that volatility continued on Thursday.
In Illinois, Canada and Mexico are the state’s two largest trading partners, meaning that the tariffs could impact a number of businesses and farms.
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Illinois Manufacturers’ Association President and CEO Mark Denzler says those tariffs could impact Illinois companies that produce large equipment and automobiles.
“If there’s a tariff on Canadian crude coming across the border, that could result in higher costs at the gas pump,” he said. “We get a lot of food from Mexico and Canada, and you could see some price spikes when you go to the grocery store.”
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Denzler did say selectively targeted tariffs could be effective.
“Most economists will tell you there’ll generally be an increase in costs, but is it worth that at the end of the day for potentially more investment in American manufacturing down the road,” he said.
The Illinois Farm Bureau is also monitoring developments, as tariffs could have impacts not just on items that they import, but also on exports if Mexico and Canada implement reciprocal tariffs.
Illinois Sen. Dick Durbin has blasted the proposed tariffs as a potential disaster for the economies of Illinois and the U.S.
“The tariffs proposed by President Trump would drive up costs for manufacturers, disrupt our supply chains, and they already have inspired retaliatory tariffs, which will hurt small businesses and consumers even more,” said Durbin. “Illinois is a top trading partner of both Canada and Mexico, and our local businesses that rely on importing and exporting goods will face the brunt of this harmful proposal’s impact.”
Trump has insisted that tariffs will allow the U.S. to be “extremely liquid and rich again” in remarks ahead of their taking effect.
