Donald Trump said tariffs of 25 per cent on products from Canada and Mexico could be introduced as early as February, hours after taking office as US president on Monday.
Speaking at the White House while signing various orders shortly after his inauguration, Trump said, “We’re thinking in terms of 25 per cent on Mexico and Canada, because they’re allowing vast number of people … to come in.”
“I think we’ll do it Feb. 1,” Trump added, referring to the potential start date for the tariffs.
Earlier on Monday, the Wall Street Journal reported that Trump did not intend to impose tariffs on trading partners like Canada, Mexico, and China.
U.S. President, Donald Trump takes first steps
Instead, he planned to instruct the authorities to assess trade relations with China and its neighbours on the North American continent, the Wall Street Journal reported, citing a summary of a planned memorandum and Trump’s advisers.
Shortly after winning the election in November, Trump threatened to impose tariffs on goods from Canada, Mexico, and China.
There are also fears in the EU that Trump could impose new tariffs.
Tariffs are a type of surcharge on imported goods. They are paid as goods enter the country.
Trump imposed a range of tariffs on imported goods during his first term in office from 2017 to 2021.
Earlier Monday, Trump vowed to “immediately begin the overhaul” of the US trade system “to protect American workers and families.”
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump said in his inaugural address.
Trump had threatened the tariff hikes on Canadian and Mexican imports as president-elect, as well as an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the country.
On the campaign trail, Trump also floated the idea of added duties on all imports and even steeper rates on Chinese goods.
Mexico, Canada and China are leading sources for goods imported by the United States, according to official trade data.
Asked about across-the-board tariffs, Trump on Monday night told reporters in the Oval Office he might enact them, but added: “We’re not ready for that yet.”
Tariffs are paid by US importers to the government on purchases from abroad, and the economic weight falls on importers, foreign suppliers or consumers.
