Sunday , 2 February 2025
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White House says Trump has signed order to impose tariffs on Canada, Mexico and China

  • Tariff to be on 25% of all Canadian imports except 10% on energy products
  • 25% tariffs on all Mexican products (no exemptions)
  • Retaliation clause calls for further action, likely increased tariffs
  • Tariffs on China to include 10% tariffs on all China exports to US on top of existing tariffs
  • Refers to International Emergency Economic Powers Act (IEEPA) law
  • China has refused to cooperate with measures to restrict fentanyl
  • Canada is playing an increasing role in fentanyl shipping
  • Tariff on Canada revokes de minimis waiver

There are some moving parts here with the retaliation clause as Canada has pledged to announce (if not implement) counter-tariffs in an hour. A US President has also never used the International Emergency Economic Powers Act in this way and that’s likely headed to a court challenge, which I expect he will lose.

I will be keeping a close eye on the news on the weekend to see where this heads. If it doesn’t die down then we’re going to have a wild day in the markets on Monday.

This article was written by Adam Button at www.forexlive.com.

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