President-elect Donald Trump on Monday announced his intent to impose a 25% tariff on goods from Mexico and Canada, alongside a 10% tariff on Chinese imports. In a series of posts on Truth Social, the 78-year-old cited concerns about illegal immigration and the trade of illicit drugs. Trump is set to be inaugurated on January 20.

“On January 20th, as one of my many first Executive Orders, 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 wrote in a post. “As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before.”

Elon Musk, a prominent billionaire backer of Trump, reacted swiftly to the announcement. “Price of Fentanyl will rise sharply,” the Tesla and SpaceX CEO commented on X, the platform formerly known as Twitter.

How Trump’s Tariff On Canadian Goods Is A Win For Elon Musk

In August this year, Canada announced a 100% tariff on imports of Chinese-made electric vehicles (EVs). Ottawa also declared plans to impose a 25% duty on Chinese steel and aluminum. The tariffs on Chinese EVs directly impacted Tesla’s Shanghai-made vehicles, which were the only Chinese-manufactured EVs imported to Canada.

Now, with Elon Musk playing a prominent role in the Trump administration as the Chief of the Department of Government Efficiency (DOGE), the Tesla CEO may find an opportunity to retaliate against Canada for the earlier tariff.