ABC WORLD NEWS TONIGHT
11/26/24
6:39 PM
DAVID MUIR: Now, to the economy tonight, and President-Elect Trump says he will impose 25% tariffs on Day One against our neighbors Canada and Mexico. Tonight, Mexico says it will slap a tariff on U.S. goods in exchange. Trump pointing to the border, fentanyl, and illegal immigration. But tonight, this question here -- who pays for these tariffs? U.S. companies bringing the products into the U.S. pay the tariff at first, and then sell those products to U.S. shoppers. So will those costs be passed onto consumers? Here's Terry Moran tonight.
TERRY MORAN: In a statement that rattled markets worldwide, President-Elect Donald Trump declared that on Day One of his new administration, he will impose the most sweeping tariffs in recent history, targeting America's nearest neighbors and biggest trading partners. "I will sign all necessary documents to charge Mexico and Canada a 25% tariff on all products coming into the United States, and its ridiculous open borders," Trump posted on social media. "This tariff will remain in effect until such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country." It's the fulfillment of a campaign pledge.
DONALD TRUMP: And I’m putting tariffs on Mexico, every damn thing that they sell into the United States has got to have like a 25% tariff until they stop drugs from coming in.
MORAN: The United States does more than $1 trillion in trade with Canada and Mexico every year. From consumer electronics to cars and trucks, to fresh fruit and vegetables. Trump's new tariffs would not be paid by Canada and Mexico, but by U.S. companies and stores, who will pass on much of the cost to consumers by raising prices on their products.