Donald Trump has issued his toughest threat to Canada in years, warning on his first day in office that he could impose punitive economic sanctions across North America.
The next U.S. president on Monday night threatened to impose a 25% import tariff on all products entering the country from Canada and Mexico on Jan. 20, 2025, his inauguration day.
He issued the warning using his Truth social media account. That warning began with complaints that migrants and drugs were flowing across the northern and southern borders into the United States, and then heralded harmful import fees that would drive up costs for exporters in Canada and Mexico. It could also make products less attractive and increase costs for U.S. consumers.
After President Trump complained, “On January 20th, in one of the first of many executive orders, I imposed a 25% tariff on all products imported into the United States from Mexico and Canada, and We will sign all documents necessary to impose ridiculous open borders.” About a caravan of immigrants approaching through Mexico.
“These tariffs are in effect until we stop drugs, especially fentanyl, and all illegal aliens from invading our country!
“Both Mexico and Canada have the absolute right and authority to simply resolve this long-simmering problem. We hereby demand that they exercise this authority. Until they do so, It’s time to pay a big price!”
President Trump has made similar threats before.
It is unclear whether President Trump intends to proceed with the plan as described, or whether it is a negotiating ploy to elicit specific action.
President Trump has made this type of threat before, usually in the context of negotiations.
He came close to formally declaring his intention to abandon the original North American Free Trade Agreement in 2017, just before negotiations on a renewed deal began. Those negotiations stalled in the final stages, and in 2018 he threatened to impose punitive tariffs on Canadian car exports, but that threat was lifted days later when Canada and the U.S. agreed to renew their trade pact.
In fact, during his first term, he imposed tariffs on Canada on steel and aluminum before the countries could negotiate exemptions.
It’s unclear how the threat of tariffs fits in with one of President Trump’s key campaign promises: lowering the cost of living for Americans in general and gas prices in particular.
Oil is Canada’s largest export to the United States. A 25% tax on oil would begin to challenge that influential campaign promise.
