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Trump Plans To Enact 25 Percent Tariffs On Canada And Mexico On February 1st

President Donald Trump has been moving quickly to implement his agenda since his inauguration on Monday morning. One of Trump’s pet issues throughout his 2024 campaign has been tariffs, and he’s finally in a position to impose them. His first targets are his North American neighbors, Canada and Mexico.

“We’re thinking in terms of 25% on Mexico and Canada because they’re allowing vast numbers of people” into the US, Trump told reporters in the Oval Office on Monday, according to Bloomberg. “I think we’ll do it February 1st.”

President Donald Trump.

Trump is ostensibly using North American tariffs as a bargaining chip to influence Canada and Mexico to slow the flow of illegal drug trafficking and immigration into the United States. He first proposed the 25% tariff on Mexico and Canada in a Truth Social post in November, and now he’s following through.

If such tariffs were imposed, it would have a big impact on the American car industry. Millions of cars are built in Canada and Mexico and imported to the U.S. every year, and GM alone has two Canadian plants and three Mexican plants that produce cars, trucks, and commercial vans for the North American market. Roughly 30 percent of the vehicles that GM sells in the U.S. are imported from Canada and Mexico.

GM CAMI Assembly.

Wolfe Research estimates that additional levies on Mexican and Canadian imports would boost average new car prices by approximately $3,000.

“None of this should be surprising. The one thing we’ve learned is that President Trump at moments can be unpredictable,” Dominic LeBlanc, Canada’s finance minister, told reporters shortly after Trump’s comments.

GM San Luis Potosi Plant.

LeBlanc said the Canadian government will continue to discuss border security and other issues with the Trump administration. “In our conversation with American officials, we have spoken about our shared commitment to the fight against fentanyl and to ensuring that immigration is orderly and legal.”

Based on LeBlanc’s response, Trump’s tariff threats are already proving effective in bringing trade partners to the negotiating table. The US-Mexico-Canada Agreement (USMCA), which currently governs North American trade, is up for review in 2026, but it could be revised sooner.

George is an automotive journalist with soft spots for classic GM muscle cars, Corvettes, and Geo.

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Comments

  1. Please edit out the word “ostensibly” as it is editorial and not factual.

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    1. Ostensibly: apparently or purportedly, but perhaps not actually.

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  2. Games

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  3. “we have spoken about our shared commitment to the fight ” And that is why Trump is president. He isn’t promising to “talk” about “commitments.” He is taking action, and quickly at that, and is all about attaining results. Talk is cheap. Mexico and Canada are going to fold like a cheap 1-ply napkin.

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    1. How dumb can you be. The same thing will happen like last time: retaliatory tariffs. Enjoying paying more because your president orange is too dumb to understand how the global economy works.

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      1. I’m guess your David Dickinson then? As last is saw, inflation was flat for Trump’s last 4 years, and the media (CNN and the view in particular) complained nonstop “when the trade war starts we’ll pay more” but the trade war was in full swing, inflation was flat, American jobs came back, and we had a booming economy. Some reason, Biden “return to normalcy” jumpstarted inflation. You can’t make this $$$$ up! 😂😂😂

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        1. Yep, biden was a disaster and i am so glad he lost.

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    2. All these tariffs are not making economical sense. Keep celebrating that you screwed your neighbors but the end result will be increased prices for the consumers on either side of the borders. USA actually runs a trade surplus with Canada if you take out the energy exports of Canada to US (oil, gas and electrical energy). US runs large trade deficits with other countries of the world and the tariffs levied on these countries are at 2.5%. In my opinion he’s barking at the wrong tree.

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  4. >>> Hope this guy makes north americans born in USA to not buy any european cars anymore and buy only GM,, Ford, Chrysler produced in USA,,,, with own projects again elegant with chrome and hood ornaments… please now USA people stop buying BMW, Mercedes, Porsche etc. Indeed if Mexica were with decent people, coulde be absorved to as Canadá has to be and yes the Gulf is Gulf of Americas, it serves South America, Central A,erica and north america ie also the Caribbean islands, please USA people stop to buying german car of here Germany, each block with each own projects like in 1970 was

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  5. WTF Is it all unemployed Bidum administration employee’s on here today

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  6. Oh man the libs are going ballistic today!!! Keep watching CNN and MSNBC and getting your fill of liberal lies and propaganda. I for one have slept 100 times better since the MAN has been in office.

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  7. To tntsierra, keep sleeping and or keep listening Fox lies News like Trump. Wait until Canada cut electricity in the US, cut oil from Alberta(watch your gas bill), cut wood shipments ,cut aluminum shipments. USA needs Canada as Canada needs USA. Why Mr Trump does not consider Canada as a brother??? And do not forget, for immigration, Roxam Road that lasted , at least 3-4 years, to the point that Canada had to build HOTELS to received immigrants coming from USA

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    1. Poor guy! You’ve been brained washed way to much. Come out from your shell and see the light. So many have amd they feel so much better. You will too. God bless

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      1. Everything Trump touches dies.

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    2. Renald, explain why the United States gives $7,358,732 to Canada in environmental aid?

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  8. To Al, the 7.4 millions was a way (hiden) for the USA to compensate Canada to have accepted to receive( for a period of 3-4 years) thousands of your immigrants that came from the USA to Canada via Roxam Road (New York state to Quebec province in Canada). We paid for their lodging, food and mostly paid their medical bill. For your information, here, in Canada, even if you do not have personnal insurance, medical cares at your doctor and the hospital are FREE-FREE. Wake up USA(especially replubicains) you are living 50 years behind

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  9. Trump is a bully, a liar, a crooked businessman, a disgrace to humanity.
    Canada will not fold like a napkin. They will react. The US needs Canadian oil, because they can’t buy it from Venezuela due to sanctions. If Canada stops the flow of oil, electricity, lumber, and minerals, the US may not fold, but they will hurt. Never has a president done so much damage to the relationship of 2 countries that are the envy of the rest of the world.

    Reply

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