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.