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Donald Trump to implement 25% tariffs on imports from Canada and Mexico: ‘They have no room left’
Donald Trump has said the tariffs are to force Canada and Mexico to step up their fight against fentanyl trafficking and stop illegal immigration
President Donald Trump on Monday announced that 25% tariffs on imports from Mexico and Canada would be implemented starting Tuesday and warned that there was “no room left” for the two countries to avoid US trade action.
The tariffs were paused for a month after its announcement, leaving room for diplomatic engagement with Canada and Mexico to address Trump's concerns on the alleged failure of US neighbours to stop illegal immigration and drug trafficking.
Addressing reporters in the Roosevelt Room, Trump said, "Tomorrow — tariffs 25% on Canada and 25% on Mexico. And that’ll start. They’re going to have to have a tariff.”
The announcement rattled the US stock market as S&P 500 index fell by 2% in Monday afternoon trading as analysts warned that the tariffs would lead to higher inflation for American consumers and upset decades-long trade relationships with US neighbours.
Trump's choice on the exact tariff rates for Canada and Mexico remained unclear as of late Sunday, AP reported. On Sunday, Commerce Secretary Howard Lutnick told Fox News that the US president's decision was “fluid”.
“He’s sort of thinking about right now how exactly he wants to play it with Mexico and Canada. And that is a fluid situation. There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate,” Lutnick said.
Canada, Mexico have a ‘plan’
Canadian Foreign Minister Melanie Joly said her government is ready to retaliate if Trump implements his tariff plans.
“If Trump is imposing tariffs, we are ready. We are ready with $155 billion worth of tariffs, and we’re ready with the first tranche of tariffs, which is $30 billion,” Joly said.
Ottawa has also maintained diplomatic efforts to avert a trade war. The Trump administration was briefed last week about a “very strong border plan” to tackle US concerns on illegal immigration and fentanyl smuggling.
Canadian Prime Minister Justin Trudeau has stressed that less than one per cent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border.
Mexico President Claudia Sheinbaum said that her country is united in response to Trump's tariff threats.
“It’s a decision that depends on the United States government, on the United States president. So whatever his decision is, we will make our decisions, and there is a plan; there is unity in Mexico,” she said.
(With AP inputs)
