Trump mulls 25% tariff on Canada, Mexico goods in February

 Trump Signals Possible 25% Tariffs on Canada and Mexico Starting February

Just hours after being sworn in as U.S. president, Donald Trump announced that his administration is considering imposing a 25% tariff on imports from Canada and Mexico, with the measure potentially taking effect as early as February 1.

Speaking at the White House while signing executive orders following his inauguration on Monday, Trump justified the tariffs by accusing both countries of allowing a large influx of people into the United States.

“We’re thinking in terms of 25% on Mexico and Canada because they’re allowing a vast number of people to come in,” Trump stated. “I think we’ll do it Feb. 1.”

Conflicting Reports on Trade Policy

Earlier that day, The Wall Street Journal reported that Trump did not intend to impose immediate tariffs on major trading partners, including Canada, Mexico, and China. Instead, the report suggested that his administration planned to review trade relations with China and North American neighbors before taking further action.

Concerns Over Potential Trade Barriers

Following his November election victory, Trump hinted at possible tariffs targeting Canada, Mexico, and China, sparking concerns among global markets and European Union officials, who fear similar measures could be extended to the EU.

Tariffs function as import duties, adding extra costs to foreign goods entering the U.S. market. During his first term (2017-2021), Trump implemented various trade tariffs on imported goods, particularly those from China, as part of his broader trade strategy.

If enforced, the proposed tariffs could significantly impact North American trade relations, potentially reshaping economic dynamics between the U.S., Canada, and Mexico.