Trump says he plans to impose 25% tariffs on Canada and Mexico in February

In the first sign of increased attention to trade, President Donald Trump said Monday that tariffs could be imposed against Mexico and Canada as early as early February.

“We’re looking at 25% levies on Mexico and Canada because they’re allowing a certain number of people” to cross the border, Trump said. The president called Canada a “very bad abuser” and said the target date for tariffs would be “I think February 1.”

The remarks were made to the press as the new director general proposed a series of executive orders targeting everything from regulation to free speech to immigration.

Although it is no secret that Trump is considering imposing broad obligations on the United States’ trading partners, the timing and extent of this measure are in question. There had been speculation that the tariffs could be delayed and could target certain essential products rather than being more general.

In his remarks, Trump provided no additional details on how or when the tariffs might be imposed. He had indicated that there would be no customs duties on the first day of his mandate, amid the multitude of signing decrees.

Trump is reportedly considering imposing 25% tariffs on Canadian goods, part of his plan to impose 10% tariffs on all countries, which could increase over time. Such a move against Canada would severely harm its economy, given that the two countries exchange more than half a trillion dollars a year.

In addition to seeking to protect U.S. business interests, Trump has said he wants to use taxes as a way to encourage Canada and Mexico to crack down on fentanyl trafficking. In his inaugural address, Trump pledged to designate international drug gangs as terrorist groups. This gives the administration additional tools to combat the flow of drugs across the border.

“I will immediately begin overhauling our trade system to protect American workers and families,” Trump said in his speech. “Instead of taxing our citizens to enrich other countries, we will impose tariffs and taxes on foreign countries to enrich our citizens.”

He further created the Eternal Revenue Service, set up to help collect taxes, which he says will result in “massive amounts of money” entering federal coffers. U.S. Customs and Border Protection currently serves this role.

Stock market futures were flat as Trump spoke, but Treasury yields fell. The president earlier signed an executive order aimed at combating inflation, promising “emergency price reductions” through targeted measures on housing, health care, appliances and other costs. THE dollar has also fallen and recently lost almost 1% during the session against its global trading partners.