Trump Says Canada, Mexico May Get 25% Tariff by Feb. 1

By Ryan Hanrahan

Reuters’ David Lawder, Andrea Shalal, and Jarrett Renshaw reported Monday evening that “President Donald Trump did not immediately impose tariffs on Monday as previously promised but said he was thinking about imposing 25% duties on imports from Canada and Mexico on Feb. 1 over illegal immigrants and fentanyl crossing into the U.S.”

“As he was sworn into office, Trump stopped well short of a swift tariff action against the two U.S. neighbors, but directed federal agencies to investigate persistent U.S. trade deficits and unfair trade practices and alleged currency manipulation by other countries,” Lawder, Shalal, and Renshaw reported. “In a presidential memo, Trump directed the Commerce and Treasury departments and the U.S. Trade Representative to probe the economic and national security risks of large trade deficits ‘and recommend appropriate measures, such as a global supplemental tariff, or other policies, to remedy such deficits.’”

“Asked by reporters at the White House whether he would impose a universal tariff on all imports into the United States, Trump said: ‘We may. But we’re not ready for that yet,’” Lawder, Shalal, and Renshaw reported. “Asked about the Canada and Mexico tariffs, he said he was thinking about 25% because the two countries were allegedly allowing ‘vast numbers of people’ and fentanyl into the U.S. Trump also said he wanted to reverse the U.S. trade deficit with the European Union, either with tariffs or more energy exports.”

No Tariffs on China Revealed

Bloomberg’s Jenny Leonard reported Monday that “President Donald Trump held off unveiling China-specific tariffs on his first day in office, instead ordering his administration to address unfair trade practices globally and investigate whether Beijing had complied with a deal signed during his first term.”

“During an impromptu press conference in the Oval Office as he signed executive orders on Monday night, Trump avoided committing to a plan for Chinese tariffs. The new president at times indicated that he did plan to impose tariffs because of China’s role exporting fentanyl precursor chemicals, as well as his anger over Chinese influence on the Panama Canal,” Leonard reported. “…And Trump threatened countries in the BRICS grouping — which includes China — with increased tariffs, and indicated he could also impose taxes on Chinese goods if Beijing blocked the sale of the social media app TikTok to a U.S. entity.”

“But at the same time, Trump declined to say what date he would impose additional tariffs and said he would be having ‘meetings and calls’ with Chinese President Xi Jinping,” Leonard reported. “The decision not to immediately target Beijing on Monday reflects a shift by the incoming president into a negotiating mode and an eagerness to cut another deal with Chinese President Xi Jinping, according to a person familiar with the decision who asked not to be identified discussing private deliberations.”

Canada Ready to Retaliate If Tariffs Are Levied

The Associated Press’ Rob Gillies reported Monday evening that “top Canadian ministers said Monday that Canada will be ready to retaliate after President Donald Trump said he was thinking of imposing a 25% tariff on Canada and Mexico on Feb. 1.”

“Canadian Foreign Minister Mélanie Joly said they ‘will continue to work on preventing tariffs’ but said they are also ‘working on retaliation,’” Gillies reported. “Canadian Finance Minister Dominic LeBlanc said Trump can be unpredictable. ‘None of this should be surprising,’ he said. ‘Our country is absolutely ready to respond to any one of these scenarios.’”

“Canadian leaders earlier expressed relief the tariffs were not imposed on the first day of Trump taking office,” Gillies reported. “Canada is one of the most trade-dependent countries in the world, and 75% of Canada’s exports, which include automobiles and parts, go to the U.S. Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (U.S. $2.7 billion) worth of goods and services cross the border each day.”

Trump Says Canada, Mexico May Get 25% Tariff by Feb. 1 was originally published by Farmdoc.