Shortly after giving his inaugural address on Monday, President Donald Trump said 25% tariffs could be imposed on products from Canada and Mexico as early as February 1.
“We're thinking in terms of 25% for Mexico and Canada, because they're allowing huge numbers of people into the country and allowing fentanyl into the country. Canada is also a very egregious abuser. “President Trump told reporters. The Oval Office on Monday evening.
When a reporter asked when the tariffs would go into effect, President Trump replied, “I think they will go into effect on February 1st.”
President Trump later said: “If they're stealing our wealth, stealing our jobs, stealing our businesses, damaging our communities, we're calling on everyone who does business in the United States.” He said he would consider imposing a “universal tariff.” “Company”.
President Trump's comments clearly surprised the Canadian government. tough talk That's even though the trade war with President Trump, particularly the candidates vying to replace outgoing Prime Minister Justin Trudeau, apparently believed the threat of tariffs had subsided.
canadian gloves and mail noticed US media reports on Monday suggested that President Trump would “direct agencies to correct persistent trade deficits and secure trade deals that prioritize American jobs.” After rarely talking about tariffs, the free-spirited president suddenly started talking about them again. Press conference.
“It's a mistake for the U.S. government to move forward with imposing tariffs. It's a mistake from the perspective of the cost of living in the United States, jobs in the United States, security of the supply chain,” Canadian Finance Minister Dominic LeBlanc said in response to President Trump's comments. said in response.
“This is an important moment for Canadians. We must continue to fight for our interests and protect jobs across our country, and we are calling on political leaders across the country to come together. I We are putting our country first,” said Foreign Minister Mélanie Joly.
Prime Minister Trudeau's outgoing cabinet has about two months until the prime minister's “interim” status ends and the process to select a successor begins, but the two-day policy retreat took place near Ottawa to coincide with President Trump's inauguration. planned. Withdrawal appears to have picked up a bit of steam after the newly sworn-in US president casually said that 25% tariffs were still on the table.
On the other hand, the UK guardian noticed He said global stock markets were “mostly calm” after President Trump's inauguration and tariff remarks. The Nasdaq index was unchanged, the S&P 500 rose just 0.4%, and the dollar rebounded to a five-year high against the Canadian currency, although it was expected to fall amid the tariff panic. Asian markets' reaction was similar to the S&P 500, while European markets were down less than 0.5%.
“Increased oil production, no sign of cryptocurrency mining, and punitive tariffs on Mexico and Canada: These are the three key takeaways for investors from President Trump's inaugural address,” said Jochen Stanzi, principal analyst at CMC Markets. he said. Guardian.
“We can only hope that Mr. Trump does not impose punitive tariffs on the EU and Germany until after the German parliamentary elections, as the outgoing government is in little position to respond to changes in trade relations with the United States. It should not be seen as permanent. Sooner or later, President Trump will also target Germany,” Stanzi added.
Tuesday, CNBC Saw Stocks rose as “Wall Street viewed President Trump's comments and first-day actions on international trade as being slightly softer than originally thought.”
That sounds like a much different perspective than the view from Ottawa on Monday night, but CNBC noted that President Trump pointed out: talked He talked about tariffs without actually “authorizing new taxes on his first day back in the Oval Office.”
Goldman Sachs economist Alex Phillips told clients that Trump's “remarks on Canada and Mexico were actually more hawkish than expected,” but that his “policy announcements on tariffs were more benign than expected.” It was,” he said.
In contrast, Phillips said that even though he had said in a sparring session with reporters that he would reduce the 25% tariffs on Canada and Mexico within two weeks, President Trump said those tariffs “were not what we expected.” It concluded that there is a possibility that it is considered to be a lower priority than other countries.
