U.S. Plans Feb 1 Tariffs on Canadian and Mexican Imports

President Trump announced a 25% tariff on Canadian and Mexican products as part of a broader review of U.S. trade policies in a move that could impact packaging and processing machinery manufacturers.

New tariffs on North American Neighbors
U.S. President-elect Donald Trump is threatening new tariffs on multiple countries after making tariffs a signature of his 2024 Presidential campaign.
Janet Sullivan via Getty Images

President Trump has announced plans to impose a 25% tariff on products imported from Canada and Mexico, effective February 1. This decision is part of a broader initiative to reassess U.S. trade policies, as outlined in an executive order signed by Trump. The order directs federal agencies to conduct a comprehensive review of trade practices, currency manipulation, and foreign taxes, with reports due by April 1.

The proposed tariffs are tied to concerns from the administration regarding immigration and drug trafficking from Canada and Mexico, along with perceived unfair trade practices. Trump also suggested the possibility of a universal tariff on all imports, citing that he feels many countries take advantage of the U.S. economically. The executive order also includes the potential for creating an External Revenue Service to oversee tariff collection, which Customs and Border Protection currently manages.

The announcement has reignited fears of a potential trade war, with both Canada and Mexico indicating readiness to retaliate with their own tariffs. Canadian Finance Minister Dominic LeBlanc emphasized to the New York Times that Canada is prepared to respond, while Mexican officials have similarly warned of countermeasures. Outgoing Canadian Prime Minister Justin Trudeau said American consumers will pay more if the tariffs are imposed.

“Everything is on the table.” Trudeau said to the AP. “It would be bad for Canada, but it would also be bad for American consumers.”

Speaking to CTV from the Canadian Embassy on Inauguration Day, National Association of Manufacturers (NAM) President and CEO Jay Timmons said: