With less than two months until his inauguration, U.S. president-elect Donald Trump says he’s going to sign an executive order on his first day back in the White House imposing 25 per cent tariffs on all products coming from Canada and Mexico.
Posting on his Truth Social platform late Monday, Trump announced the plan to have American importers pay tariffs on goods from the country’s northern and southern neighbours until Canada and Mexico take actions to stop illegal immigrants and drugs from entering the U.S.
“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. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
Technically, a 25 per cent tariff would likely contravene the Canada-U.S.-Mexico trade deal that was signed by the first Trump administration. The deal is up for review in 2026, if it survives until then.
Trump has previously walked back trade threats in exchange for concessions from other countries, so it’s unclear whether the incoming administration actually intends to implement the tariffs, as they would raise costs for American consumers.
U.S. customers purchased 77 per cent of Canada’s exports in 2023, with oil destined for U.S. refineries topping the list of products.
While any potential tariffs are still weeks away, the impact was felt immediately in the currency market as the Canadian dollar dropped by around 1.1 per cent to 70.7 cents U.S. as of Monday night.
President-elect Trump also announced on Monday that he will impose an additional 10 per cent tariff on imports from China until the Chinese government moves to stop fentanyl movement to the U.S.
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