Trump announces 25% tariffs on imports from Canada, Mexico

President Donald Trump has announced 25% tariffs on all goods coming into the US from Canada and Mexico from February 1, even as he has issued a wide-ranging executive order asking his government agencies to evaluate trade relationships, deficits, tariffs and possibilities of trade agreements by April.

- Prashant Jha

WASHINGTON:

With tariffs among the words Trump has claimed he loves the most, and repeated promises to impose across the board tariffs on day 1 of his term, the President's inaugural address did not have any specific announcement on tariff hikes. Trump announced the creation of External Revenue Service (ERS) to collect taxes and tariffs, but the lack of disruptive announcements sent a signal of reassurance to markets and economists worried about trade wars.

But that was not to be the case for the US's closest neighbors and two of the three top trading partners. During an expansive conversation with reporters at Oval Office, while signing executive orders on Monday, Trump said, "We are thinking in terms of 25% on Mexico and Canada because they are allowing vast numbers of people - Canada is a very bad abuser also - to come in and fentanyl to come in. We will do it February 1st."