It’s almost certain that U.S. President Donald Trump will impose a 25 percent tariff on most imports from Mexico and Canada on February 1—a promise he made just a day after taking office on January 20.
Speaking on Thursday, Trump outlined several reasons why the tariffs are necessary and confirmed that he will announce them on Saturday.
Mexico, he claims, has failed miserably in controlling the illicit flow of people and drugs across the southern border. He also cited trade deficits with Mexico and Canada as a key reason for the tariffs. “They have never been good to us on trade … They’ve treated us very unfairly,” he said.
Many analysts on both sides of the border suggest that another motive behind the tariffs is to generate revenue to offset tax cuts for U.S. citizens, as well as to strengthen Trump’s bargaining position when the USMCA trade pact comes up for review next year.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump said in his inauguration speech.
Neither the Mexican nor Canadian governments have fully disclosed how they will respond, though some form of retaliation is certain. Mexican President Claudia Sheinbaum said Wednesday that she does not believe the United States will impose tariffs but has a plan in place if necessary.
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