Trump aides want to hit Mexico, Canada with tariffs before talks

The 25% import levy on both the countries could go into place as soon as 1 February

- Gavin Bade, Vipal Monga & Paul Vieira

Momentum is growing among President Trump's advisers to place 25% tariffs on Mexico and Canada as soon as Saturday, bucking conventional wisdom in Washington and on Wall Street that he would back off the threatened levies as he has in the past in exchange for concessions.

Trump has shown a willingness to move swiftly on tariffs in recent days without allowing for drawn-out talks.

On Sunday, Trump announced—and then backed off—a threat to impose 25% tariffs on Colombia, citing its initial refusal to accept repatriation flights from the U.S. A senior administration official said the decision, despite the pullback, proves that Trump views tariffs as an "effective negotiating tool" and "effective punishment" for nations that don't hew to his agenda.

The president remains "very serious" about his threats to Mexico and Canada and expects them to cooperate, the official added.

This could be a wake-up call for investors and businesses. Goldman Sachs told clients last week that there was only a 20% chance that Trump would impose tariffs on Saturday, noting that he had made similar threats in the first term but didn't always follow through. But Trump was amenable to the tariffs-before-negotiations strategy even before the tariff showdown with Colombia, according to people familiar with the discussions, though no final decisions on Canada and Mexico have been made.

Tariffs against Mexico and Canada would be the first salvos in a multifront trade war that Trump looked ready to start unexpectedly on Sunday with his Colombia duties, before that country hewed to his demands to accept repatriation flights for migrants. He has also threatened to hit China, Denmark, and a range of other European countries with tariffs, but he appears intent to turn his aim next on the U.S.'s North American neighbors.