"Very Bad Abuser": Canada, Mexico Brace For 25% Tariff As Trump Takes Over

Donald Trump accused Canada and Mexico of failing to stop illegal immigration and narcotics into the United States.

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Trump made the threat hours after taking the oath of office

President Donald Trump said Monday he may impose 25 percent tariffs on Canada and Mexico as early as February 1, while promising punitive measures on other countries as part of new US trade policy.

Trump rekindled his threat against the two major US trading partners hours after taking the oath of office -- accusing them of failing to stop illegal immigration and drug trafficking into the United States.

"We're thinking in terms of 25 percent on Mexico and Canada, because they're allowing vast numbers of people -- Canada's a very bad abuser also -- vast numbers of people to come in, and fentanyl to come in," he said in the Oval Office as he signed an array of executive orders.

He added that he was thinking of enacting the tariffs on February 1.

Earlier Monday, Trump vowed to "immediately begin the overhaul" of the US trade system "to protect American workers and families."

"Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens," Trump said in his inaugural address.

Trump had threatened tariff hikes on Canadian and Mexican imports as president-elect, as well as an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the country.

On the campaign trail, Trump also floated the idea of added duties on all imports and steeper rates -- 60 percent or more -- on Chinese goods.

Mexico, Canada and China are leading sources for goods imported by the United States, according to official trade data.

Asked about across-the-board tariffs, Trump told reporters in the Oval Office he might enact them, but added: "We're not ready for that yet."

Tariffs are paid by US importers to the government on purchases from abroad, and the economic weight falls on importers, foreign suppliers or consumers.

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EU in cross-hairs

Trump on Monday also signed a directive for federal agencies "to address the cost-of-living crisis," calling for actions to lower housing costs and others.

Speaking in the Oval Office, Trump took aim at trade imbalances with the European Union too, saying it did not import enough American products.

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He added he would "straighten that out" by using tariffs or by urging more oil and gas purchases from the bloc.

The EU's economy commissioner said earlier Monday that it stood ready to defend its interests, while Canadian Foreign Minister Melanie Joly said Ottawa would work to ensure it is ready to respond to any US actions.

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In his inaugural address, Trump reiterated his plan also to set up an "External Revenue Service" to collect tariffs, duties and revenues, promising "massive amounts of money" pouring in.

Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP.

But Trump's supporters have pointed to other proposals like tax cuts and deregulation as ways to offset any potential negative impacts.

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Scott Bessent, Trump's Treasury secretary nominee, told lawmakers last Thursday that he disagreed the cost of tariffs would be borne domestically.

And Commerce secretary nominee Howard Lutnick told Trump's supporters in Washington that if firms wanted to avoid duties, they should build factories in America.

Trump also signed a directive to establish a new "Department of Government Efficiency," after naming billionaire ally Elon Musk to lead such an initiative.

The office dubbed DOGE is expected to propose major cuts to federal spending and regulations.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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