Official announcement from the US government or Department of Commerce

Trump Threatens 25% Tariff on Canada, Mexico, 10% on China on First Day

Nov 26, 2024, 05:10 PM

President-elect Donald Trump has threatened to impose a 25% tariff on goods from Canada and Mexico, and an additional 10% on imports from China, effective from his first day in office. This announcement has led to a decline in industrial stocks in Toronto, with the Canadian oil industry highlighting the economic and security benefits of its exports to the US. The proposed tariffs are expected to drive up costs across industries, including higher US petrol prices and weaker US refining margins, as warned by oil producers. In response, Canadian Conservative Leader Pierre Poilievre has urged Prime Minister Justin Trudeau to change course on several policies, including the carbon tax, to address the economic implications of these tariffs. Ontario Premier Doug Ford described the tariff threat as a 'stab in the heart' for Canada. The Loonie has fallen to its lowest since 2020 following Trump's announcement, reflecting the market's reaction to the potential trade war. US carmaker stocks have tumbled on worries that these tariffs will drive up costs across the industry, and US Treasuries have also seen a decline.