Trump promises tariffs on Canada and Mexico, plus higher China levies

• Trump's declarations on Truth Social will also be a wake up call for those in Washington and on Wall Street who thought his tariff talk was mostly bluster.

Zoom out: In a series of posts on Truth Social, Trump said the new tariffs were tied directly to stopping the flows of drugs and migrants.

• A tariff of 25% on all goods coming from Canada and Mexico would take effect on Jan. 20, he said.
• Imports from China would face a 10% tariff "above any additional Tariffs," he wrote. He previously spoke of a 60% tariff on Chinese goods.

Between the lines: By announcing the tariff plan almost two months in advance, all three governments will have time to respond — and potentially negotiate an alternative.

Zoom in: Trump spoke at length on the campaign trail about his plans to tariff imports from China and Mexico, but Canada was not a focus.

• The U.S. imports more than $400 billion worth of goods from Canada a year, per government data.

• Some Republican lawmakers had thought Canada would escape the tariff regime because of existing free-trade agreements.
• Earlier this month, after Trump's election, Canada's finance minister said both sides had learned tariffs on each other didn't make sense.

What to watch: As of Tuesday morning, the news had a relatively mild market impact. The U.S. dollar rose 0.8% against the Canadian dollar and 1.2% against the Mexican peso. Yields on U.S. 10-year bonds rose slightly to 4.3%.

Editor's note: This story has been updated with additional details on the tariff announcement.