President Donald Trump issued a statement on Truth Social on Monday pledging to impose a 25% tariff on all imports from Canada and Mexico when his second term in the White House begins in January. Trump says the tariff is a retaliation against the country’s North American neighbors until they clamp down on drugs and migrants illegally crossing the borders.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States and its ridiculous Open Borders,” Trump said. Reuters reports that 83% of all Mexican exports and 75% of Canadian exports in 2023 went to the United States.
Trump discussed trade and border security with Canadian Prime Minister Justin Trudeau after issuing the tariff threat, and a source told Reuters, “It was a good discussion, and they will stay in touch.” Meanwhile, Mexican lower house leader Ricardo Monreal urged “the use of bilateral, institutional mechanisms to combat human, drug and arms trafficking.”
Additionally, Trump promises “an additional 10% tariff, above any additional tariffs” on all imports from China, which would impact UDSM cars imported from China, like the Buick Envision.
New tariffs on Canada and Mexico look like a violation of the U.S.-Mexico-Canada Agreement (USMCA), but the International Emergency Economic Powers Act (IEEPA) of 1977 grants the president authority to regulate commerce in response to a national emergency.
New tariffs could theoretically be imposed by the executive branch of the federal government without an act of Congress, but some experts are calling it a threat to bring Mexico and Canada to the negotiating table. The USMCA has a “sunset” provision opening it up to renegotiation in 2026, but Trump’s rhetoric could motivate Canada and Mexico to renegotiate the deal sooner.
“This strikes me more as a threat than anything else,” former National Foreign Trade Council President William Reinsch told Reuters. “I guess the idea is if you keep hitting them in the face, eventually they’ll surrender.”
Trump’s surprise announcement sparked a 1% rise in the U.S. dollar against the Canadian dollar and a 1.6% rise against the Mexican peso.
Comments
Trump is not an economist. He has no clue what he’s doing when he imposes tariffs. The consumer will end up paying the tariffs. He will put America into a recession, because big corp will not play his game. FYI Mr. Trump, fix your borders if you want to stop immigration and drugs. Drugs enter Canada from the USA!
so you rather keep using salve & cheap labor for products instead of forcing companies to make in usa?
I worked for a car manufacturer in the 70’s. Lost my job do in part to sub contracting job out for cheaper labor. Overseas company’s produce it cheaper and keep the profits. Ship it over here and we pay the same price as if it was produced here. Who wins here. Not us. We want clean water and air. So we ship jobs overseas and they pollute the water and air. Who wins here ? We lose again and just pay higher taxes to the government.
We have to get smarter and look at the whole picture.
Subcontracting to a lower cost company is common practice for the OEM. The company winning the new contract is not necessarily a company manufacturing overseas. It’s hard to stay competitive in today’s global economy. Unfortunately, the process cannot be reversed by governments.
He imposed tarrifs 4 years ago, on Mexico, Canada and China. China up to 30% on many products. Inflation was near 0, And record job numbers. History is against you on this one.
Also, last time, China subsidized our tarrifs because they couldn’t afford to loose the business. There’s a good chance, and Chinas banking system has already indicated they will spend stimulus, that this will repeat. China will be paying the tarrifs costs, not you the consumer. If they don’t, well, our economy is already in hyper inflation, but jobs will actually increase to match it unlike right now where inflation is outgrowing wages.
Apparently you’re clueless to what trumps Chinese tariffs did last time around. Go out and ask farmers.
Trumps tariffs killed the soybean market because China simply stopped purchasing from the US and instead went to South America. And China is already in talks with Brazil probably in preparation for more Trump tariffs.
Why don’t you educate yourself so when your pockets are empty because of tariffs, you’ll understand why.
Bet. 1 year from today, I’ll wager inflation is near 0, jobs are record high, all wages are up, farms are booming, exports hit record.
FYI, crops really struggled last 4 years because diesel and fertilizer hit all time highs. All the row croppers I know preferred the trump administration by far.
And that based off what we saw on the ground. All the egg heads on twit-er with econ degrees can saw what they want. They said trump 2016 was WW3, they said the American economy was on a downhill curve, that Biden 2020 was going to be a return to normalcy, that our foreign relations would improve. The only thing that remained constant is that the exact opposite of what they said would happen happened, and now it’s a joke that the difference between conspiracy theories and fact is 6 months. Bet you your wrong, and everything your getting your information from is wrong. And that a stock market style bet.
And if it isn’t, you’ll blame the democrats somehow anyways, even though you guys have the trifecta.
Did you ever see the trade deficit between China and the US? China’s got a lot more to loose than the US -and Mexico for that matter.
Baloney, pure and simple. Export sales of soybeans were not affected whatsoever since the tariffs were only on imports, not exports, kumquat.
If the tariffs were soo bad, then why did Biden leave them in place and even build upon them? I won’t say tariffs are the answer for everything but for a player like China who doesn’t like to play nice with others then others reserve the right to not have to play nice with you.
And as for the inflation, it was a direct consequence of lockdowns, most notably the zero COVID ones from China (goes to show they cannot be relied on as a reliable trading partner). That and dems throwing money at people not working and keeping the spending going while there weren’t enough products to go around. NOT the tariffs. Inflation remained low up until well into the pandemic. Trump started tariffing the instant he entered office.
Biden rescinded all of Trump’s tariffs on unfair Chinese products on Jan. 21, 2021. Then, the dunce decided he had to re-instate them because of the massive inflation his insane energy policies kicked-off and the tariffs being eliminated did nothing to lower prices.
Sounds to me like the tariffs wasn’t the issue. The energy policy and lockdowns were.
VIA Mexico…
He is going to DUMB ASS ! Watch him, Listen to him ! #BUILDTHEWALL
so you rather keep using slave & cheap labor for products instead of forcing companies to make in usa?
You are off topic. There is no “slave & cheap labor” in Canada. Canada buys more from US than China, Japan, France and UK combined. Consumers are going to pay the price on both sides of the border. As for the drugs and illegal immigrants, most are coming through the southern US border.
Don’t blame Trump for the drugs coming in. It was Biden’s fault and Trump has to clean up Biden’s mess.
I am not blaming Trump for the issue. It is a fact that illegal immigrants and drugs are coming through the US southern border for decades. If Trump can stop it I would give him the credit. It would benefit both US and Canada.
About that new Blazer RS I’ve been thinking about getting….I better make up my mind before January 20th, 2025.
Ah yes. Our one true enemy: Canada. Get ready for everything to be incredibly expensive. The big question: What minority group will we blame next for high costs?? Left-handed people?
This is not a question about race. It is a question about legalities and an idiot administration that did not do their job for the past four years. What part of “illegal immigrant” do you not understand?
U.S. imports about 7 Million barrels of OIL annually from Canada!!! Watch the howl start when gas prices go up!!!
Even though all will suffer under this moron’s administration I for one will have my popcorn ready as the leopards begin eating the faces. F**ck around and find out indeed!
At least it will be a better administration than Biden’s
hahahahahaha! Thanks, I really needed a good chuckle. You seem to have forgotten the complete train wreck of the first Trump admin.
You mean the low inflation (pre-covid)? The $2 gallon gas? The growing auto industry? The Covid vaccine that was fast-tracked? Secure borders? No wars? Yes, the Trump Administration was far worse than the $4 gallon gas, record inflation, open borders, and the woke BS that the Biden Harris administration heaped on America.
Garry, the US imports 4.3 million barrels per day from Canada, which Trump wants to tariff as well. And say goodbye to electricity, natural gas, minerals, etc. at current prices. Both countries rely on each other. Canada exported $600 billion to the US last year, the US exported only $520 billion to Canada. This tariff is also a violation against the USMCA trade agreement. Like I said, he doesn’t know what he’s doing, or going to do, that will hurt the US as well.
We import it because they can’t process it. We actually can cut them off and just use American oil, but theirs is cheap because of we don’t buy it, they pour it out on the ground. That price will not increase one cent.
Do you think plants are built overnight? Who’s going to pay for those plants, hire and train workers. How long will that take? How much will that cost in lost productivity and supplies?
I would give the automakers 18 months to repatriate production. gm has a ton of underutilized plants that can absorb most if not all of the production from Mexico, South Korea, and China.
You and the MAGA group would be the first to jump up with rage if Canada redirects it’s crude oil exports to China instead of “pour it it in the ground”.
Canada can f*** around, fund out. They wont.
This is the stupidest comment you ever made on this site. What do you mean by “theirs is cheap because of we don’t buy it, they pour it out on the ground”. Nobody does that, there is a global market for oil. China would send their tankers to Vancouver in a heart beat to buy all the oil Canada can export at the market price. But this is not something you would do to your closest ally unless he betrays you.
illiterate idiot
Canada is not Mexico! We are a very important customer and friend of our American neighbours. Just look at the truck sales of the big three and compare Canada to Mexico. We pay our auto workers very highly and do not set up plants to employ cheap labour. The two countries are not comparable and it is insulting to be treated as such by this classless bully.
Then let us sell milk! Lead by example and remove all your tarrifs on us you hypocrite. Funny, you say bully, cause that’s how I feel about you over the last 4 decades.
Why all the hate about tarrifs on Canada? Unfortunately, some of our closest allies have been screwing us majorily these last couple decades. Germany has a 40% import tarrifs on cars/industrial equipment, and gets free access to our economy. Canada imposes a 50% on our dairy, and they’ve done that for decades. That’s why Chevy/Ford build in Ontario. Theyve stollen multiple factories from American workers, used our military for defense, and done that for decades. They can buck up and deal with a 25% tarrifs for a couple years. If you have a friend who constantly used your tab at a bar, would you bail them out or cut them off. Cut them off says I!
THIS.
Because of a condition called Trump Derangement Syndrome or TDS for short. Thats why. When its Biden doing it (which he basically did continue the tariffs) there doesn’t seem to be a problem.
Tired of losing jobs sent overseas at the expense of American Workers…and big business profiting because of this!
You wouldn’t want to pay the price to have many of these items built in the US. There’s a reason Cadillacs are built in the US and Chevy’s small CUV/SUV built in Mexico. People complain now cars are to expensive. Imagine what they’ll say when their next Equinox is 25% more.
Drill baby drill
“New tariffs on Canada and Mexico look like a violation of the U.S.-Mexico-Canada Agreement (USMCA), but the International Emergency Economic Powers Act (IEEPA) of 1977 grants the president authority to regulate commerce in response to a national emergency”. Trump has a real emergency with a big hard turd up his ass!
And Biden and Harris have even bigger ones.
Look this is like poker.
Trump is calling them and they will blink. They need us more than we need them.
Trudeau has already backed off on a call today. Mexico will you.
This is business not politics. This is how the game is played and we will get what we want.
Same with China. They will collapse if they don’t give in.
These are American companies in these countries. Read GM Canada and GM Mexico. The only company these tariffs will hurt is GM US.
So what if they are American companies? Levis and Schwinn are American companies too that proudly “design” or “package” their product in the US while the whole value chain is in low-wage countries. gm is moving in the same direction. Almost every crossover under the size of the Acadia/Enclave/Traverse is built in low-wage countries. The profits will come back here only to be reinvested in low-wage countries. Ford actually produces more vehicles in the US than gm, and employes 20 percent more hourly workers. Stellantis is not far behind. I think Barra’s vision is to ultimately have gm become a “virtual” company with perhaps one or two factories left in the US with the entire value chain- design, engineering, production- being outsourced to low wage countries.
Mexico and Canada are lucky to share this continent with us. They benefit from America’s military might.
Tariffs ?
Small price to pay.
THIS is the answer. Other countries benefit, too. So…here’s to good trade deals.
I am hearing a lot of speculations and who is the blame for what ever ; But my question is WHO has the POWER all this going back and forth WHERE IS THE POWER ??
$900+ billion projected defense budget next year. THAT power.
Excluding Tesla, there are only 2 cars in the top 20 that are 100% American built. The rest are built by foreign companies in US plants. The reason US companies build plants globally is so they can ship US built autos around the world without paying huge penalties.
As for oil, US only has light crude, that’s why they need Canadian heavy crude. So stop looking at Canada as the enemy I and they won’t look at America as the bully. As far as sharing North America, Canada was discovered first, but climate drove People south.