Official announcements from the governments of Canada or Mexico

Trump Plans 25% Tariffs on Mexico and Canada Starting February 1, Risking USMCA Trade War

Jan 21, 2025, 07:01 AM

President Donald Trump announced plans to impose tariffs of up to 25% on imports from Mexico and Canada starting February 1. This decision, made on his first day back in the White House, aims to address what Trump describes as the flow of undocumented migrants and drugs into the U.S. from these neighboring countries. Trump specifically mentioned Canada as a 'very bad abuser' in relation to the influx of fentanyl and migrants. The announcement has already impacted financial markets, with the Mexican peso depreciating to 20.75 units per dollar from 20.50 units earlier in the day. Both Canada and Mexico have warned of retaliatory measures should the 25% tariffs be implemented, potentially leading to a trade war among the signatories of the U.S.-Mexico-Canada Agreement (USMCA).