Former U.S. President Donald Trump, in his first presidential address following his inauguration, announced plans to impose a 25% tariff on imports from Canada and Mexico, effective from February 1.
Shortly after taking office, Trump accused both nations of failing to curb illegal immigration and drug smuggling, warning the two key trade partners during a signing ceremony in the Oval Office.
“We are considering imposing a 25% tax on Mexico and Canada because they allow a significant number of people and fentanyl to enter the U.S,” Trump stated, adding, “Canada is also a major culprit in this regard.”
Trump further mentioned that these tariffs could take effect from February 1.
In addition to this announcement, Trump signed an executive order directing agencies to review trade deficits, unfair trade practices, and currency manipulation.
He also ordered a review of U.S. trade agreements, including those with Canada, Mexico, and China.
Expressing a commitment to overhauling the American trade system, Trump said, “Instead of taxing our citizens to benefit other countries, we will impose tariffs on foreign nations to benefit our own people.”
During his remarks in the Oval Office, Trump also accused the European Union of trade imbalances, claiming that the EU does not import enough American goods.
Some experts have warned that increased tariffs could lead to inflation for consumers and negatively impact the economy.
Trump also announced the creation of a new agency, the Department of Government Efficiency, to be led by Elon Musk.
The office, informally named “DOGE,” will propose measures to reduce federal spending and regulations.
