OTTAWA (dpa-AFX) - President Donald Trump on Day 1 of his second term in office has revealed plans to impose 25 percent tariffs on import of goods from Mexico and Canada.
At a signing ceremony at the Oval Office after swearing in on Monday, Trump said the new tariff will come into force on February 1 in an effort by his administration to force the neighboring countries to crack down on illegal immigration and drug smuggling into the U.S.
If implemented, the drastic change in North American trade policy could lead to imported goods from these countries turn costlier for American consumers.
Both Canada and Mexico are highly dependent on trade with the U.S.
Likewise, the United States is a major exporter to both these countries.
Steep hike in tariffs raise the prospect of Canada and Mexico imposing retaliatory tariffs on goods imported from the U.S., according to reports.
Around 75 percent of Canadian exports go to south, which was worth $418 billion last year.
In 2024, Mexico had exported $475 billion worth of goods to the U.S.
Trump has also threatened to impose an 'additional 10 percent tariff, above any additional tariffs' on China if it doesn't take tough action on fentanyl smuggling.
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